Since the start of the Covid-19 pandemic, 75 per cent of advisers have seen an increased willingness from clients to talk about protection. What’s more, 37 per cent report an increase in protection enquiries from new customers and 39 per cent have seen the same from existing ones.
The economic impacts of the pandemic have had a major part to play. With thousands of people facing financial hardship, many are looking for ways to protect themselves and their families from further difficulty.
This is where advisers can demonstrate their value. In order to do so it will be crucial to ensure that protection is a central part of their offering.
Advisers should discuss protection from the very start of the advice process with every new client to ensure that borrowers understand the importance of having cover. Introducing protection at the end of the process might otherwise cause clients to think it is an unnecessary add-on.
Advisers should also be making sure that protection remains a focus with their existing clients. Brokers can be using this time to get in touch with current customers and confirm whether their circumstances have changed during this period, to ensure they are supporting them in the best way possible. For instance, professional advice will be invaluable for the many customers who have taken advantage of payment holidays on their mortgages or protection plans.
If borrowers are struggling to meet the cost of their cover once payment holidays have ended, advisers can see if there are alternative ways to help. Revisiting the mortgage may be one route worth exploring. This could help reduce overall outgoings for customers and make protection conversations easier for advisers.
Gear up now
For brokers who do not currently offer protection, now is the time to start.
It is vital to remember that financial planning spans much more than mortgages, and there are other avenues businesses can take to help retain clients and welcome new ones – protection being a key route. Research conducted by The Exeter found that only one in 10 self-employed workers had income protection. It’s likely this figure will worsen following Covid-19.
This signals a great opportunity for mortgage brokers to start supporting customers with protection policies as well. Ultimately, offering a holistic advice service that considers a client’s circumstances and discusses vital products such as protection policies is what will make a good broker great. Moreover, with government forbearance measures becoming less generous at the end of October, demand for cover is likely to increase.
For advisers who are already in the protection space but are looking to expand their proposition, it’s worthwhile gauging whether there are any opportunities to upsell in the local area. Attending local events or networking sessions can often be a useful way of boosting customer engagement and increasing your exposure.
It may also be sensible for advisers to consider stepping into the group protection market if this would help business over the long term. Local companies may be looking to offer more security to their staff following Covid-19 and may be interested to hear about how introducing a group protection plan could help.
Make yourself known
Similarly, marketing one’s offering is vital if advisers are to establish their business as protection-centric. Social media platforms such as LinkedIn will be useful for advisers looking to bolster their profile in the protection space. while Twitter can enable them to create advertising tools that can be targeted at their desired audience.
It is, however, important to remember that different social media channels cater to different demographics. Twitter is likely to draw a younger audience than Facebook, for example, so each platform needs to be approached differently.
Regular, targeted email communications concerning market updates and product changes also provide an opportunity for advisers to reinforce their value to clients, and what better time to do so than in the fast-moving circumstances we find ourselves in today?
Ultimately, cover is going to be the lifeline many families and businesses need as this crisis endures, and advisers will continue to be crucial in ensuring their customers are adequately protected.
That is why it is in any adviser’s best interest to gear up now, ensuring they are ready to meet growth in demand and provide peace of mind to clients while future-proofing their business.
Toni Smith, chief operating officer, Primis Mortgage Network
