Choosing the right provider is key to advisers considering the business protection market Defaqto has said in a new guide to the sector.
Defaqto's guide to business protection suggests that potential for advisers to grow business in this market is high, as many will already have clients with business protection needs within their existing customer base.
However, choosing a provider that can offer advisers the support they need is critically important to how far they can take advantage of the opportunities within this sector.
As a consequence, robust due diligence by advisers is important to ensure they select appropriate partners for both their business and clients.
Defaqto's guide highlights the main areas of support that advisers should consider when assessing potential provider partners:
Specialist business protection teams.
Draft agreements and trust documents.
Technical guides setting out the principles of business protection.
Interactive decision trees and calculators that can be accessed online to identify appropriate solutions and ascertain levels of cover that may be required.
Ben Heffer, Defaqto's Insight Analyst for Life and Protection, said: "Business protection is less about products and more about the support that providers make available to advisers.
"Although business protection often necessitates significant levels of cover, the crucial aspect is finding the product that fits with a client's unique circumstances.
"Sourcing a provider who can assist in this process will help advisers unlock the opportunities within this market.
"When seeking a provider partner, advisers should allocate time and resource to finding a company that offers the right level of support."
Defaqto's analysis showed that while eight life assurance companies offer products specifically designed for business protection services, a further 13 offer assurance plans that can be used to address business protection needs.
The guide can be downloaded, free of charge, at www.defaqto.com/adviser/ifa/guides.
