With inflation rising, interest rates increasing and energy prices rising to all-new highs, the current economic situation is no doubt impacting the conversation protection advisers are having with their clients.
While the insurance industry might fully recognise the benefits of having protection in case someone is diagnosed with an illness or, worse, in the event of death, this isn't always as clear to consumers.
"That's why it's so important that we deliver value from day one - not only at the point of claim - especially as many clients will be reluctant to commit to new financial obligations or look to cut costs where possible," says Andy Philo, Director of Strategic Partnerships at Vitality.
"At the point a client takes out protection, it goes without saying that they see the benefits of having that protection in place," says Philo. "But if we don't regularly engage with them, any power of the advice that was originally given may subside over time - or might get forgotten completely, particularly as and when finances are put under the microscope," he says.
Protection plans must offer tangible benefits and value. "Not only are clients more likely to value it and engage at a time when avoiding cancellations is a priority, advisers are able to help them to support their lifestyle while providing solutions to meet their needs," he says.
Vitality data indicates that if a client feels like they can't live without something because of the value they are getting from it daily, they are less likely to cancel it[1].
"Clients are more aware of their vulnerability these days - both physically and financially - but they might just need reminding. This could be what stops them from leaving themselves exposed at the worst possible time," says Philo.
For more on why immediate value in protection matters more than ever, watch this exclusive interview with Andy Philo.
