Since the resurgence in the mortgage market this year, advisers are increasingly spending less time and committing less to the protection sale, say industry commentators.
However, research from Avelo, now owned by IRESS, shows advisers think simpler underwriting, incentivising products and financial education could reverse falling sales.
In a spot poll, over a third of advisers thought simpler underwriting could help redress falling protection in the market and boost sales. A further third thought that incentives, such as linked reimbursed NI contributions, could help and one in four advisers also believed that effective financial education could help alleviate the pressure.
Of protection products, half of advisers suggest life insurance is the most popular, but one in five think mortgage protection products were actually most in-demand as an easier sale alongside mortgage applications and sales so far this year.
Dave Miller, head of portal, Avelo said: “Falling protection sales are a major issue for the industry and addressing this is important to make sure the market gets back on the right track. We have recently seen initiatives such as the Pink Network’s new graduate scheme, helping to bring new blood into the industry to engage a younger consumer and narrow the protection gap.
“It is important that advisers explore all clients’ protection needs, as the potential loss of earnings for the main breadwinner in a family really needs attention. With mortgage sales and applications rising so far this year, an adviser must explore the possibility of discussing protection policies to go alongside them.”
