The Intermediary – May 2025 - Flipbook - Page 75
P RO T E C T I O N
Opinion
The dependability
of advisers in a
changing market
‘A
wful April’
has seen UK
consumers face
price rises across
multiple utilities,
with global
economic headwinds continuing to
prolong and exacerbate the cost-ofliving crisis.
The insurance market has also
experienced some substantial price
adjustments in the past few years.
This can largely be aributed to the
increase in costs of goods and services.
Recent macroeconomic events,
like the imposition of tariffs and
fluctuating interest rates, as well as
a continually deteriorating climate,
have continued to put upward pressure
on the price of premiums.
It means clients continue to keep a
close eye on their monthly outgoings
in a bid to keep costs down. Recent
research that Barclays conducted
in April underlines this: 37% of UK
adults said they were trying to reduce
their outgoings in anticipation of
rising household bills.
So, while home insurance
premiums remain in flux, there
remains a growing number of
challenges for advisers to contend
with when speaking to their clients.
This isn’t news to anyone reading
this. Nor is the fact that an adviser’s
most powerful tool remains their
knowledge of the market.
The market complexity that
creates consumer confusion is
exactly where adviser expertise is
most valuable. These challenges
aren’t insurmountable. Instead, they
should be seen as opportunities to
demonstrate value and to develop
those deeper client relationships
that will endure long aer economic
pressures ease. By helping clients
understand exactly what they’re
paying for, and how it protects their
most valuable assets, advisers create
value beyond premium comparisons.
We’d always recommend beginning
conversations by seing out to
understand any specific needs from
the client, as well as any concerns,
up front. Explain how appropriate
coverage addresses these concerns
and highlight real, anonymised
case studies where proper coverage
prevented financial hardship down
the line. We know how much advisers
value this, and several can be found on
the Paymentshield website.
EMMA GREEN
is distribution director
at Paymentshield
The critical thing for
advisers [...] is to engage
customers in conversation
about their current
insurance situation”
Understanding value
Focus on offering peace of mind that
comes from a client knowing exactly
where they are, and aren’t, protected.
There’s a huge number of first-time
buyers and inexperienced buyers on
the market, all of whom need the
advice, guidance and support that only
advisers can offer.
For instance, resources such as
Defaqto Compare, integrated into
Paymentshield’s Adviser Hub, can
help advisers identify the quality
of an existing product. It outlines
specific strengths and drawbacks of
different policies. It can be easily used
to demonstrate to clients how features
and benefits vary between available
policy options.
The critical thing for advisers to
get correct is to engage customers
in conversation about their current
insurance situation – delivering advice
clearly and effectively will always
be where advisers can go above and
beyond their competitors. In doing so,
advisers can quickly form a picture
of what’s important to the customer
and what additional protections
might be required.
However, this picture is constantly
changing. So, making sure that you’re
frequently and proactively checking
in with clients is critical. We’ve
developed a number of resources to
simplify these conversations, and
to make the general insurance (GI)
process as straightforward as possible.
We’re commied to providing
support that makes a difference to
your processes. Whether it’s working
with our sales team to create your own
bespoke GI sales process, using our
Continued Professional Development
(CPD)-accredited GI academy to brush
up on your general insurance skills,
or referring to us, we want to make it
as easy as possible to ensure all clients
are being enabled to have an advised
conversation when they’re purchasing
a new policy.
The current economic landscape
presents a number of challenges, but
it also reinforces the crucial role that
advice plays in protecting the financial
wellbeing of your clients.
In this environment, helping clients
navigate financial uncertainty with
confidence is as valuable as a policy
itself. We’re here to help simplify this
process for you, to protect your clients’
most valuable investments. ●
May 2025 | The Intermediary
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