"Ultimately, advisers will recognise that conversations with clients this year may inevitably be a bit more price-centric."
The rising cost of living is causing people to look closely at where they can cut costs and make savings. While it might start with the food shop or leisure activities, financial products are clearly not immune from that process.
In a YouGov survey we conducted last month with over 2,000 UK adults, we asked people to what extent they’ll be scrutinising their financial products this year compared to last, with a view to saving money. Over half (51%) of respondents said either a little or a lot more.
Advisers will of course be totally tuned in to this public desire to shop around for better deals and ensure that whatever they are paying offers the best value for them. With that in mind, where advisers are having general insurance (GI) conversations, it’s worth taking advantage of digital tools at their disposal that really help them to tick the “value” box for their clients – and which, ultimately, can help them to maximise conversion.
At Paymentshield, we offer a range of online tools that help advisers to do just this, and which are geared towards full end-to-end sales conversion support, not just the means to provide the initial quote.
For example, we’ve developed a number of conversion tools within our digital Adviser Hub platform to support advisers when it comes to turning that initial quote into a sale. These tools are at advisers’ fingertips, so they can access them within the online journey in real time while they’re face-to-face with the client, and it’s a slick and easy process.
The Defaqto Compare software is a brilliant example. This enables advisers to compare policies on a like-for-like basis with the client, by pulling through competitor offerings to sit alongside one another.
Unlike price comparison sites, the Defaqto Compare dashboard presents the information in a way that encourages the client to consider quality and suitability as well as price – showcasing key features between policies, and facilitating greater transparency over what ‘value’ truly looks like.
Where a client already has a home insurance policy in place, it can often result in securing the same level of cover for less, or greater protection for the same price.
Utilising the Defaqto Compare tool to help evidence value is not only best practice, in that it helps customers to feel fully informed, but it also helps to drive conversion.
Another tool at advisers’ disposal – and something offered by many providers - is commission sacrifice. If it’s clear that price is the ultimate priority for the client and it’s evident they’re going to walk away and settle for a policy that doesn’t adequately meet their needs, advisers can use this kind of tool to adjust their commission without compromising the quality of the product. This will lower the price of the insurance for the client.
If an adviser has done the work in speaking to the client about GI and produced a quote, then using a commission sacrifice tool is a much better option than letting the client walk out of the door.
In addition, within our Adviser Hub platform there is also an integrated first-time-buyer discount that is automatically added on to any first-time-buyer-quote, whether they are purchasing their first home or whether they’re a landlord insuring their property for the first time. This automatically reduces the price as it applies an introductory no-claims discount of two years.
Ultimately, advisers will recognise that conversations with clients this year may inevitably be a bit more price-centric. They are in the best position to support clients in a way that is sensitive to price concerns but which still delivers the best outcomes for the client.
In order to do this, providers need to equip advisers with the right digital tools that facilitate those GI conversations. These tools need to make demonstrating value easier for advisers so that they’re addressing a top client priority, and they must be integrated into the journey so that advisers have that additional support in real-time.
Having these tools at their fingertips means advisers can be responsive and adapt their approach accordingly while they’re in the midst of a conversation, and maximises the chances of their client saying ‘yes’ to home insurance there and then.
