As an industry, we’re well versed in the fact that insurance plays an important role in supporting people and their families through challenging times.

If the past 18 months have taught us anything, they’ve highlighted the devastating impacts that unexpected illness or loss of income can have on families.

As well as huge health implications, the pandemic has caused emotional and financial stress for households and individuals across the country.

However, as the effects of Covid-19 and the various government lockdowns began to take shape, there was one positive — more people started to engage with insurance products, experiencing first-hand the benefits that appropriate cover could bring them.

Most savers have enough cash to support themselves for just 90 days

In fact, Swiss Re’s latest Term and Health Watch revealed that the pandemic prompted some 5.8 million UK adults to buy — or consider buying — life insurance. Despite this, however, the country is still suffering from a significant insurance gap. The same research also showed that nearly a quarter of the UK remains uninsured.

With the nation still feeling the after-effects of the pandemic, and the economy starting what may be a slow recovery, within this climate there is an opportunity for brokers and the industry to work together to engage consumers on the importance of adequate protection for them and their loved ones.

Proper education

The best way a broker can ensure their clients have the right cover in place is by providing clear and informative advice on the products available, as well as their tangible, real-life benefits.

If more people understood protection policies, would they still prioritise savings?

Research from EY in 2020 found that consumers tended to prioritise savings over life or health insurance — and sometimes with detrimental effects. Only 15% of those surveyed told EY they would list life or health insurance as a top-three priority to protect their financial wellbeing, compared with 77% who prioritised savings.

This is striking, especially when considered alongside the fact that most savers have enough cash to support themselves financially for just 90 days. It seems then that individuals are relying heavily on savings to safeguard their future, but for many this may not be enough.

The best way a broker can ensure their clients have the right cover in place is by providing clear and informative advice on the products

The question then is: if more people understood protection policies, would they still prioritise savings?

In addition to a lump sum payout, many protection providers also offer benefits such as access to a virtual GP service or return-to-work support. Policy holders can also benefit from specialist care, such as physiotherapy, mental health support, or additional cover for spouses and children.

Brokers have a moral responsibility to ensure clients are prepared for financial shocks

In some instances, these extras can even be accessed without issuing a claim, providing enticing benefits that have never been more important than at present. But education remains key.

Relationships matter

Talking insurance is never easy. Discussing protection cover requires frank and sometimes difficult conversations with clients to assess their situations in full, and understand the support they would require if a financial shock should occur.

However, these conversations should be seen as an opportunity too. Brokers who take the time to truly understand the needs of their clients can start to build real and meaningful relationships with them, creating additional touchpoints throughout a client’s product term.

Time to act now

The hard truth is that more people have come face to face with financial difficulties as a result of the pandemic. Sadly, this trend may well continue. With an interest rate rise on the horizon and the cost of living likely to increase for many following the chancellor’s autumn Budget, and the announcements leading up to it, households across the country may well begin to see their finances squeezed over the coming months.

Nearly a quarter of the UK remains uninsured

Now is the time to act. Brokers have a moral responsibility to their clients to ensure they understand their options, and are prepared for financial shocks, should the worst happen. The challenging climate means that brokers need to be having these conversations now – and thankfully, now more than ever, clients are willing to listen. The role of a broker has never been more vital.

Toni Smith is chief operations officer at Primis