As of late, there have been a flurry of developments in the protection and income protection (IP) markets. Guardian made a foray into the IP scene, while Aegon’s protection arm was clumsily sold to Royal London. These changes have come at a time of economic hardship for insurers and financial advisors. In essence, it’s been a tumultuous period for all those involved.
However, this doesn’t mean there’s nothing to be gained. On the contrary, the industry must seize this opportunity to adapt, innovate and make progress. Already, a number of protective measures have been adopted by all of the players, and these actions are, albeit slowly, unearthing tangible solutions.
With this in mind, it’s essential that all stakeholders involved in the protection process take note. By considering their customers the focal point of decisions, they can develop solutions that can benefit everyone, and make a real difference. Instead of applying a knee-jerk reaction to changing trends and fluctuating markets, a deliberative and calculated approach can reap rewards.
What’s more, financial advisors must advocate their services in the protection field. They must overcome challenges and distinguish themselves as offering more than a mere transactional service. By stressing the importance of ongoing advice and a comprehensive approach, these advisers can resonate more effectively with their customers.
The industry as a whole must also reflect on what practical solutions can be implemented to simplify the overall protection process. All the stakeholders must work together to develop better insights, pricing models and risk segmentation. Through this consolidation of effort, the entire industry could redefine itself and create more trust amongst customers.
If these changes can be successfully implemented, then the protection industry can become a reliable source of income for advisers, a hallmarks of solidity for insurers, and a bastion of safety for customers. So, we must view the current upheaval as a turning point, and take the opportunity to grow and progress. Only then, can we truly create a protection industry that works for everyone.