Head of Mortgages and Insurance Stephanie Charman takes a look at how policy options such as ‘Vitality Optimiser‘ could change the way clients engage with protection in 2016 using new trends such as wearable technology. Steph also suggests how both appointed representatives and directly authorised advisers could benefit from the added-value and direct consumer interaction protection providers offer their clients.
When it comes to protection, I believe saving your client money whilst increasing the value of their policy could be the key to sales in 2016. But with obesity and other health issues on the increase, your client’s BMI or general health could affect the cost of the policy, leading to loaded premiums and possible affordability concerns.
That’s why saving clients money when buying the policy and then encouraging them to stay healthy during the term itself could also be crucial to protection sales over the next year. I think that one of the providers currently making their mark in this respect is Vitality, especially in combination with Vitality Optimiser: their flagship policy option that rewards consumers for actively engaging with their protection cover.
Staying fit and saving money
Did your clients receive any wearable technology under the tree this Christmas? If they did, they could be taking advantage of the latest benefits offered by policy options such as Vitality Optimiser. By offering rewards and even discounts to consumers if they stay fit and healthy and improve their “Vitality Status”, consumers can now actively engage with their policy, taking control of their own health-tracking using a points system. Reward can be a big incentive for clients, as they look to increase their “Vitality points” and monitor their healthy lifestyle every year.
Globally, wearable technology sales are expected to rise from 17 million in 2013 to 187 million by 2020. Sales are also on the increase in the UK, as we catch up with the engagement of the new trend in the US and China. I think it is inevitable then that more providers will embrace this consumer-focused market that helps clients directly reduce their premiums and increase their health, a win-win situation for provider, consumer and adviser alike.
Increasing client engagement can optimise sales
I understand that income protection faces possibly the strongest customer objections, despite being a vital cover for consumers. Protecting your client’s income is very real, but income protection accounts for less than 1 in 10 protection sales.
Tackling assumptions about state and employer support, as well as the surprisingly affordable cost of income protection, can often be the best start to the conversation. To help you even further, Vitality are offering an additional 5% discount on premiums on income protection policies with Vitality Optimiser, up until 29 January 2016. This means that consumers now have the potential to receive up to a 30% discount with Vitality Optimiser.
I believe that with the upfront discounts offered and the activity-tracking encouraging constant engagement with the brand, advisers will find that clients are also more likely to renew their plan, increasing your sales further.
If you want to find out more, there is a sales aid available to help you explain exactly how Optimiser works with your clients. Alternatively, call our National Protection Sales Manager Bernie Buron on 07764856553 to talk about how you can increase your sales in 2016.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.