The past few years have seen a general downward trend in protection sales and it felt that no amount of promotion and training could slow this downturn.
However, it seems likely that 2014 may be seen as a turning point and viewed as a pivotal point in the transformation of the protection market.
The second half of the year saw AIG announce the purchase of Ageas UK protection arm, signalling a positive view of the future. The regulatory sign off was announced on the 5th January and we’re waiting to see what new developments they bring to the market. Aviva caught everyone by surprise in December with their proposed marriage with Friends Life. From the outside the combined product proposition looks a good fit and with excellent personnel I am sure we shall see 1 + 1 = more than 2.
New providers
There are also rumours of new entrants in 2015. Providers have been busy with regards to improving their product offerings. Almost all of them have either entered new sectors or improved their current plans. More have started to offer severity-based plans which is good news for the market. When you add to all of this that volumes have increased, providers must be feeling very positive about 2015.
Distributors
Whilst many distributors have worked hard over the past few years to improve both the productivity and knowledge of their members, 2014 seems to have been the big breakthrough. At SimplyBiz Mortgages, we have improved our offering through enhancements to our online Protection Academy and hosted 12 protection-only roadshows which saw over 300 members attend. We also held two ‘protection weeks’ that focussed on member education rather than pure product sales. All three elements have had positive feedback and we intend to build on them this year.
We know that other distributors have added new options to their offering, which can only be positive.
Technology
2014 saw all three traditional quote portals improve their systems to include greater underwriting and multi-plan quotations. We have also seen a greater use of CI Expert from the market in helping advisers compare old and new critical illness plans. The system will be key moving forward as advisers ensure they are The final element is consumer awareness of the need to fully protect their family and themselves. Aviva has continued to raise the profile on TV with its excellent adverts. A big breakthrough could be the launch of the Seven Families initiative by the Income Protection Task Force in October. This has been picked up by all the national newspapers and will hopefully highlight the importance of all protection through the use of real-life examples.
So, looking back briefly we can observe that 2014 has seen many positive changes in the protection market. We can move into 2015 in a healthy position rather than with the normal pessimism. Let’s see what we can do to make 2015 even better.
