Providers should concentrate on low pricing of core services in the group protection market Canada life has been told.
During a Canada Life Speed Debate with advisers, Jon Ford, operations director at group insurer Canada Life, asked why overall value was not a priority in the sales process and if advisers were using elements such as employee assistance programmes efficiently in the sales process.
Canada Life's was questioning its own research, which forund 95% of clients say price is the determining factor in group products markets, with service next most popular, at 38%. With the extent of cover at an even poorer 29%, the insurer questioned the adviser market's tactics.
Brokers present said that, effectively, price was all.
Paul White, client director at Enrich Employee Benefits, said: ""With most cases being one of clients just trying to cover liability, the bells and whistles are not an issue. Once the decision to buy is made then they possibly come into the frame. There are many firms with a very similar core product clients find it hard to differentiate on so they may look at this then."
Ford asked; "Is it not more the case that there is a need for a client to be given full understanding of the product in order to make a valid assessment?"
Mathew Rann, director of employee benefits at PQR Financial Planning, replied: "We compete against other brokers and need to show we can meet what clients already have, but more cost effectively. Only then can we talk about peripherals, price is most important.
"There are also Lloyds underwriters coming in under-priced and if I don't put those to the client then someone else will-
"Clients only switch on to added value once the price is there."
White added: "Any add on innovation is also either swiftly copied by everyone else or dropped as a failure by the original provider. Essentially providers are orientated towards return of value, but do clients look at it this way?"
