The research also points to a disconnect between adviser assumptions and customer motivation. Two-fifths of advisers (40%) believe clients seek GI advice primarily for convenience, believing clients lack the time or inclination to arrange cover themselves. Only 18% attributed client demand to a desire for peace of mind in having the right product.
However, separate Paymentshield consumer research conducted in September last year produced contrasting findings. More than a third (35%) cited peace of mind as their primary driver for seeking advice, and over half (56%) said they would pay more for insurance if it ensured they had the appropriate cover.
According to the survey report, GI remains relatively new territory for many practitioners. One third of survey respondents (33%) are either at the earliest stages of having GI conversations or have been doing so for only one to two years. A quarter (25%) said they were uncertain about when to raise GI during the advice process, and 59% acknowledged scope to improve their approach.
The findings also highlight gaps in ongoing client engagement. More than a quarter of advisers (28%) said they only revisit a client’s GI needs when prompted by the client, while a further 25% rarely or never raise GI with remortgage or product transfer clients.
On sales strategy, referral is emerging as a potentially more prominent model. More than two in five advisers (41%) said they believe they could generate more revenue by referring clients rather than converting every case themselves, and 52% said referral could open revenue streams they would otherwise miss. Despite this, nearly two thirds (64%) have yet to use a referral service.
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