What the eye-catching – if rather bizarre – statement meant was that while almost half of those surveyed deemed insurance too expensive despite premiums starting from as little as £5 per month, the same individuals were happy to spend £7 on chocolate, £17 on pets and £28 on satellite television during the same timeframe.
Of course, in an ideal world we would all be able to comfortably afford life’s luxuries as well as cover, but the findings do reveal something about the nation’s psyche.
The main attitude the research uncovers is that insurance is not regarded as a necessity and is still considered as something to be done without when finances are tight.
Many Brits seem to still have an ‘it won’t happen to me’ outlook, rather than taking measures to ensure they are protected should the worst happen. Not paying monthly premiums may appear to be a cost saver in the short-term but were something unexpected to occur this would pretty quickly be exposed as a false economy.
This is the message that advisers need to sensitively convey to their clients – that protection should be viewed as an essential priority alongside their mortgages and bills, rather than relegated to an additional extra below having some extra television channels. Brokers however must be mindful of adopting too hard a sell as the ultimate decision lies with the consumer, but in most cases it really is the most prudent and sensible option.
Our network continues to grow – both in terms of AR firm numbers and overall volumes – and part of the reason for this has been the willingness of our mortgage brokers to embrace the benefits of offering their clients protection. Diversifying into new areas like this not only offers the client a more comprehensive proposition, but also enables advisers to earn themselves more of a fee in the process. Mortgages and insurance have long been complementary bedfellows and it makes sense that borrowers will require more protection when they have increased outgoing to safeguard.
One obstacle that may have prevented more intermediaries from branching out into offering cover before now is that they are unsure of how to broach the subject during the advice process. Bright Grey’s chocolate analogy may seem a little leftfield, but is the kind of quirky statistic that makes a useful icebreaker and helps clients put their priorities in perspective.
Richard Adams is managing director of Stonebridge Group
