According to the results of a 2019 adviser survey, business protection just “wasn’t a business focus” for 60% of respondents.
Further to this, Swiss Re reveal that more than two million total new individual policy sales were reported in 2018 but new business protection policies represented just 1% of them.
In terms of client interest, 70% of respondents said clients believed they would create a Plan B should the worst happen, while 66% said clients didn’t see the need and 64% said clients weren’t interested enough.
But with 5.9 million businesses in the UK, Aegon is encouraging advisers to consider throwing business protection into the mix and making it a focus for their business strategy in 2020.
Stephen Crosbie, Protection Director at Aegon UK, said: “Whether you are a pensions adviser, a private client adviser or an adviser with links to solicitors and accountants, with around 5.9 million businesses in the UK, it’s unlikely that you would not have come across a client who could benefit from business protection.
“And advisers who aren’t selling business protection are missing out on a potential income stream. Business owners invest more than just money in their businesses, they often involve a lot of blood, sweat, tears and emotion. For many, their businesses are an integral part of their lives, central to their day to day life. So it makes sense that the business should be given the same financial protection as a member of the family or asset, if not more.
“Make business protection your business in 2020.”
Aegon has launched a guide to help advisers grow by venturing into the business protection market. The guide is aimed at a wide range of advisers so they can identify and maximise business protection opportunities.
What’s in the guide:
The new guide provides information and support on specific business types including:
• guidance on setting up business protection arrangements;
• the tax and trust implications surrounding the different arrangements available;
• how to identify potential clients;
• how to develop professional connections;
• employee benefits for small and medium sized companies, and
• possible business protection solutions.
Crosbie continued: “Business protection doesn’t need to be complicated. Even if you don’t have any links into this market, our guide can help you develop opportunities, as well as learn more about business protection and how to advise on it.
“Talking to clients about business protection is a key part of guarding their most prized possessions – one of which might be their business.”