The Covid-19 pandemic has not led into a rise of requests for protection, despite public health being front and centre offset the forefront of people’s minds over the past 18 months.
74% of IFAs in the UK say that the number of client-initiated conversations about protection products has remained stagnant since before the pandemic, according to new research from Scottish Widows.
Despite many people experiencing reduced working hours, financial hardship and in some cases, illness, only a small proportion of advisers say that their clients are proactively asking for professional advice on critical illness cover (7%) and life insurance (8%).
While raising the topic of preparing for the worst is often difficult to navigate, the research suggests that additional services – also known as living benefits – can support conversations about protection.
58% of IFAs say that access to GP and virtual GP appointments is the most valuable additional service in increasing the likelihood of a client taking protection out. This is followed by medical check-ups (51%), access to mental health services (50%). Gym and fitness services or subscriptions are favoured less (22%).
Virtual communications during the pandemic have without a doubt been more convenient for many people, with greater flexibility to work around clients’ schedules (54%) – however, face to face meetings are still very much preferred across the board according to 66%.
Scottish Widows added that there are also polarised views on communication preferences between generations, and as a result, a greater need for personalised client experiences going forward.
Almost eight in 10 IFAs acknowledge that their clients aged 50+ prefer to discuss protection needs in a face-to-face setting and only 17% are comfortable talking virtually or via telephone. In contrast, 51% say that clients aged 18-35 prefer discussing this via telephone or video call, making access to a younger client base simpler than it has ever been.
While demand may not have changed, the virtual consultations that have taken place have been more holistic, considering clients’ family members and caregivers. Half of IFAs (50%) have spoken to one or more of their clients’ relatives, including primary or secondary caregivers, as a result of working remotely.
Rose St Louis, protection director at Scottish Widows, said: “If a global pandemic is not going to spark more proactivity from people in seeking out advice on their protection needs, it begs the question: what will?
“It’s human nature to push negative scenarios to the back of our minds but as an industry, we have a duty of care to broach the topic of preparedness in a sensitive and helpful manner. Technology has certainly made it easier to arrange conversations in the last 18 months but a virtual approach isn’t everyone’s cup of tea – it’s about getting to know what works best for your client base.”