Claire Ginnelly, of Premier Choice Group, tells Paul Robertson about her role in successfully managing the jump between adviser and insurer.
Individual challenges
It doesn’t automatically follow that smaller intermediaries focus on the individual market, but for those that do the challenges are multiplied. Reference again Laing & Buisson’s latest statistics, showing a drop of 15,000 medical cover bought by individuals.
Ginnelly said: “I think the individual market can survive. But again, we all need to work together to ensure there is sustainability and growth in the market place. We need to think about all the products available to us in this market place and make sure there is something for everyone. We all need to fully understand the need of the consumer and make sure we put the right proposition in place.”
She believes the jury is still out as to whether the outcome of the Competition Commission (now Competition and Markets Authority) Review will result in more people taking out PMI.
“Obviously, anything that is done to reduce costs and ultimately make PMI more affordable is welcomed, but I think it is far too early to say if this is going to be the outcome. The main thing that we as the market need to do is make PMI more affordable,” she said.
Cycle of affordability
However, she added that she does not think this is an issue that sits only with insurers, but that the distribution market also has a role to play.
“How we interact with the customer and the insurer can impact on affordability. I think to a certain extent the market is stuck in a bit of a cycle. We try to get the best terms for the client, but we focus on the price above anything else. We need to educate the clients more,” she said.
“We as the intermediary/distributor can do this, but we need help from the insurer/manufacturer to give us the tools to do so, and for them to behave in a consistent way.
“No insurer wants to be involved in a Dutch auction at renewal, with the intermediary going back and forth to keep reducing the premium further. However, when the same insurer does not hold the piece of business, they are sometimes happy to keep reducing their new business premium to win the business. This is not a consistent message and can help drive certain behaviours in the marketplace.”
Introducer arrangements
Of course, there is the impact of the reviews: Retail Distribution and Mortgage Market, which Ginnelly believes have created a different market for intermediaries.
She said: “As a result, some are deciding to specialise in certain areas, which has resulted in health intermediaries such as ourselves having some really good introducer arrangements in place. Intermediaries want to be able to offer their clients a service, but they don’t necessarily want to advise in a certain area.
“Therefore, they put an introducer arrangement in place with us, which can work really well for the benefit of all parties. And because we do not work in the pension market, we have some excellent introducer arrangements in place, which means we can offer our clients the whole package.”
On the flip side, she said other intermediaries are looking to advise in more areas, and are talking to their clients about healthcare and PMI for the first time: “Either way, it has to be good for the market.”
What also has to be good for the market is while PCG is going from strength to strength, its consultants have on hand someone who knows the insurance industry inside out, and insurers know they have someone who understands where they are coming from.
