Speaking at the Sesame Symposium, Iain Clark, managing director of protection at LV=, said that the sector is a long way from offering the easiest sales process that it should to customers.
He said: “”Where we are and where we need to be is a very big leap. We are very good at the virtues of policies like income protection or critical illness cover, but we are not very good at doing the second, third or fourth sale.
“We need to make it easier for consumers to buy that second or third product. We are overcomplicating things for the customer and they are afraid of making a mistake.”
He added: “We need to build the blocks up for customers. Their needs change and we need to adapt to that.”
On the same panel, Aviva protection director Richard Verdin said that he believed innovation in the protection sector would come in simplifying some products.
He said: “Where else can we take CI? Lists are extending without broadening cover. We have innovated that one and gone as far as we can. Innovation will be to make products simpler and we are also likely to see gender specific products.
“Real innovation will come around better service, such as grief counsellors and best doctors, to improve the experience and contribute to making it a little less difficult.”
Clark added that brokers should review their client database to see what protection they have in place: “There is probably a gap for everyone in some form and there is an opportunity. There is going to be a big change in the next six to 18 months and now is a great opportunity to start to plan to fill that gap in people’s portfolio.”
