Legal & General wants the insurance sector to reconsider the way it talks and thinks about life and critical illness insurance.
The insurer is planning to move away from existing terminology about ‘closing the protection gap’ and instead focusing on ways to better support intermediaries and the vital role they play ensuring families across the UK are protected.
Recent research conducted by Legal & General found that even the most commonly used terms within the industry were confusing consumers. Just 9% associated the term ‘protection’ with life or critical illness cover, while 40% thought the term referred to protection against physical harm and protective clothing. A further 19% didn’t associate ‘protection’ with anything specific at all.
The research was commissioned ahead of Legal & General’s eighth annual Business Quality Awards, an event aimed at recognising intermediaries who are making a difference in the protection market. The survey of 2000 participants UK wide aimed to highlight consumer behaviour and attitudes towards buying protection.
Of those in the study, 54% had no life insurance or critical illness policy in place. However, of these individuals, 68% would be willing to pay between £10 to £20 a month for appropriate cover.
Craig Brown, director of Legal & General Intermediary, said: “Consumers are still largely unaware about what protection really means, and importantly what a huge impact it can have for those who need it. Critical illness cover is viewed by many as a complicated product, and in order to give consumers the clarity and comparability they need to choose the option best for them, we need to simplify language and support our intermediaries.
“As a sector, it is our responsibility to provide intermediaries with all the tools, products and information they need to empower them to help customers. That’s why we continue to support our intermediaries through the Business Quality Awards and our ‘Hero in the Middle’ campaign, which aims to reward and recognise intermediaries who have gone above and beyond in making sure individuals and their families are protected when they need it most.”