Protection experts have warned that growth in protection sales is flat despite the increasing number of people requiring cover and also said mortgage brokers must do more to help address this shortfall.
At the Mortgage Business Expo London yesterday, a protection seminar produced statistics from Swiss Re showing that the life assurance protection gap has grown by 20% since 2002 and the income protection chasm has widened by 46% over the same period.
Louise Colley, head of protection sales and marketing for Aviva, warned delegates that 2013 looks set to be “one hell of a year” for the insurance industry as the gender pricing directive this December will cause lots of pricing activity in the first quarter of next year. Coupled with the Retail Distribution Review and various other upheavals, Colley said the first few months of 2012 would be a “turbulent time”.
Andy Philo, national account director for PruProtect, said that innovation would be the key to meeting consumer needs and said insurers and advisers alike could learn from companies like Apple that growth is possible during a recession. By embracing new technologies, integrating products with peoples’ lifestyles and displaying innovation around distribution, Philo claimed the industry can grow by tailoring solutions built round individual’s needs.
Meanwhile, Peter Brodnicki, CEO of Mortgage Advice Bureau, claimed that success in protection sales was a matter of advice rather than price and said it was up to mortgage brokers to “create a protection culture”.
He said: “We are now seeing consumers complaining that they weren’t offered protection when they took out their mortgage, so mortgage brokers need to capitalise on this unsatisfied demand. If you look after your clients, they will look after you.”
