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Bringing consumers on side with enticing, transparent products provides the key to boosting understanding of protection insurance. Richard Purcell and Blair Sievering report When it comes to insurance, what you don’t know definitely can hurt you. Sadly, it is becoming increasingly clear that there is a lack of understanding among consumers of what protection insurance does, as flagged by a report produced by The Syndicate, a research partnership between Hannover Re UK Life Branch and the Protection Review (see ‘Consumer Confusion’, p26). The same research, entitled Where Are We On The Consumer’s Radar? Navigating A Route For Protection Insurance, highlights a number of areas where, as an industry, we could better engage with consumers, both before a policy is sold and once a consumer has bought cover.
The Syndicate research shows that ‘easy-tounderstand product information’ is a key factor for consumers when buying personal insurance, second only to price. Efforts have already been made to simplify marketing and sales, but perhaps more intuitive product naming and labelling is also needed to boost consumer appeal and increase understanding. Many consumers also have a price ceiling for protection products, with 46% willing to spend up to a maximum of £20 per month. A full, holistic needs assessment is a good way for consumers to determine the level of cover they need. However, not all will be able to afford the level of premium this implies. For
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