Not all UK consumers mesmerised by protection product costs

UK consumers are not as focused on the
price of protection products as advisers may think, concluded
insurance industry executives attending a round-table debate hosted
by insurer PruProtect. “Consumers are starting to move away from
price and to place more importance on what really matters to them,”
Sammy Rubin, CEO of PruProtect, told attendees.

Supporting Rubin’s contention are findings of a survey
undertaken by PruProtect that found 42 percent of consumers
consider the extent of cover is what matters to them most when
buying protection, with just 25 percent admitting they are led by
price. Conversely, 64 percent of advisers surveyed believe clients
are led by price, with only 12 percent saying clients place most
importance on the product features.

Understanding is key

The notably high percentage of consumers who consider the extent of
cover rather than cost makes advisers well placed to sell
protection, continued Rubin, placing emphasis on the need to get
people to first understand what they need and then what they have
bought. Indeed, highlighting a clear opportunity for advisers.
PruProtect’s survey revealed that 48 percent of consumers are
unaware of the provider(s) with which their protection policy(s)
are held.

Rubin concluded the debate by stressing that advisers are the one
fundamental element to the success of closing the UK’s protection
shortfall, estimated to be £2.3 trillion ($4.5 trillion).

“It is up to providers to meet with advisers and help them
understand new innovations in protection models, so they can engage
their clients fully and draw more people into the protection
market,” said Rubin.

Underscoring its focus on advisers, PruProtect is setting up
owner-managed businesses across the UK. “This approach gives us the
ability to really understand each individual adviser’s business in
order to work with them in ways which best suit their model,” said
Rubin. He added PruProtect is two-thirds of the way through these
regional set-ups and hopes to have the whole of the UK covered by
the end of 2008.

PruProtect was established in September 2007 as a joint venture
between UK-based insurer Prudential and South African insurer
Discovery.