Life is often referred to as a game where people decide to either play it safe or take a chance. But, asks Kirsteen Grant, are they assessing their risk correctly?
It may be that the product no longer suited their needs. Or of a higher concern is the fact this group could not appreciate the full potential these products can bring. This group are falling through the net; the emotional need for the products is still there, the industry’s challenge is to find ways of gaining back their custom.
Interestingly, as noted above, consumers who have never held a product still value the importance of our products but are not sufficiently engaged to take this motivation further.
We, as an industry, are aware the sales process needs to be made easier for people so that they do not falter at the first hurdle.
Show them what they need
An opportunity for the protection industry exists in simplifying the choices and experience of the products available. Consumers find it difficult to make a decision when they do not understand the options and are not familiar with the expected outcome.
What consumers observe supports their decision making. The protection industry is connected in the consumer’s mind to financial services as a whole, from banking to general insurance. To differentiate ourselves we need to communicate more positive messages. The world is changing, and along with it how we communicate. Good news stories can easily be conveyed quickly and effectively through social media sites.
Social media also presents an opportunity to engage with potential and existing customers and for both parties to benefit – sharing with and educating one another, exchanging ideas, capturing positive messages from those that have benefited from policies, and helping the industry improve how it delivers value.
As consumers, we do not think in a rational way, therefore looking at more effective approaches and gaining a better understanding of behaviours will open up opportunities to create an environment that allows the best decisions to be made for individuals and their family.
The joint research revealed two things that would encourage consumers to engage with protection products. Firstly, they expect a clearer understanding of what the policy covers and does not cover (without jargon) and secondly; the ability to compare quotes and apply easily online. Consumer’s expectations are that they now want instant gratification, with access 24-7.
As an industry, we focus on risk. Is it time we interrogated the huge amount of data we hold on transactional behaviour patterns to find fresh insights to nudge customers in the right direction? Consumers want their custom valued with recognition for loyalty, such as multi-product discounts across a range of products, returns for increasing their cover level and recommendations to friends and family.
Looking at ways to reward consumers, particularly with long-term products, would help to encourage increased sales and keep them for the duration of the policy.
Kirsteen Grant is marketing manager at Hannover Life Re
If you were off work for a long period of time through illness or accident which of the following would you rely on to help you manage financially?
Graph 1 – Importance of cover against losing your income through long term illness or accident:
Graph 2 – Importance of cover against losing your income through unemployment:
Graph 3 – Importance of cover against being diagnosed with a heart attack, cancer or stroke:
