The key is to say: “Why do you want a
THe rise of THe Price comParison siTe Has worried many advisers selling ProTecTion, desPiTe THe realiTy THaT advice means consumers geT a beTTer ProducT for THeir circumsTances. buT How do inTermediaries comPeTe wiTH THis direcT To consumer cHannel wHicH is ofTen a cHeaPer oPTion?
PJ: Customers go online because they want to buy something and they want it to be transactional. It makes sense to see things ranked in the order of price if you want to do something on a transactional basis - that’s how everything else is done. If you go and buy a fridge online, you expect to see the cheapest at the top and you scroll down to get to the more expensive. Without anyone there explaining that a cheap fridge isn’t as good as an expensive one you go for the cheapest every time. Consumers aren’t adept at doing that bit of research for themselves. When it comes to a product like life cover it does what it says on the tin largely. The consumer doesn’t see any need to dig any deeper. They think: I want life cover, I want it to cover this amount and this term so why wouldn’t I go for the cheapest? The key for brokers is to demonstrate
that products are not all the same. Above and beyond that brokers should be showing customers they might not even need life cover. That might be the trigger for them looking for protection but brokers should not just say: “Ok you’ve been online and had a quote for a £100,000 over 20 years, let’s see if I can get close to that price for you.”
hundred thousand pounds? How did you conclude you wanted cover over 20 years?” Advisers should be getting under the skin to understand what customer concerns are and what product is most appropriate. The majority of the time life cover of a set amount over a set number of years is not the right solution for a customer because statistically they’re not going to die prematurely, they’re more likely to get seriously ill and have to take time off work and have to adjust to their lifestyle. Those are the things worrying the customer, it’s just that life cover is what they know about.
Advisers have to say to the customer I’m not a price comparison site, I’m not going to do what you did on moneysupermarket or any of the other sites that are out there. What I am going to do is give you some advice. I’m going to talk you through what’s available and what your need is and if at the end of that
conversation you’re still thinking you’d rather go with your gut instinct for the next 20 years that’s fine but I don’t think you will. JB: I think 30% of the time consumers will be concerned on price and that the other 70% of the time advisers will be able to sell the benefits of exactly what they’re getting from cover features.
neTworks ofTen Have a single Tie To a ProTecTion Provider meaning ars are comPeTing wiTH wHole of markeT ifas, is THis a Problem? GH: Yes and no. It very much depends on the circumstances. The adviser is talking to the client about a particular product and if that client wants to buy it and is prepared to buy it at the price being offered because they can see the value in it, it doesn’t matter. You can never be the cheapest on the market within the GI
mortgage introducer JUNE 2011 41
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