A study carried out by The Exeter found 43% of advisers felt product quality and added-value services were more of a selling point, compared to just 31% who said affordability.
Being able to purchase multiple products from one insurer was the third-most mentioned selling point, as said by 30% of advisers, while 29% said it was an insurer’s claims history.
Some 28% of advisers said clients placed importance on the customer service experience, while 22% focused on the insurer’s brand name or reputation.
Overall, clients seem to be less drawn to certain brands than personalised service and convenience.
As for an adviser’s experience with insurers, 30% said being able to cover multiple medical conditions that a client had was key, 29% said competitive pricing and 26% named the quality of the product.
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The Exeter asked advisers about the challenges they faced and found differences depending on the age group.
A third of advisers aged between 18 and 24, as well as 38% aged between 25 and 34, said they expected to be challenged when clarifying policy exclusions and conditions, compared to the 20% of advisers aged between 35 and 40.
A larger segment – 47% – of advisers aged 35-44 said they were worried about overcoming cost perceptions than the third of advisers aged 18-24 and the 31% of those aged 25-34. The Exeter said this showed there was a generational gap in the adviser community.
Among advisers aged 55 and over, half said they expected to come against barriers when explaining the benefits of individual policies to clients, and half also said they anticipated challenges when discussing pre-existing medical conditions.
Older advisers aged 55 and up were less concerned about clarifying policy exclusions and conditions, with just 13% naming this as a challenge compared to the overall average of 30%.
Jamie Page, head of protection distribution at The Exeter, said: “Affordability has long been a challenge that advisers have had to overcome in advice conversations, and whilst price is still a key factor for clients, it’s encouraging to see product quality being given greater consideration.
“Where a client’s sole focus is cost, they may purchase less comprehensive cover, or in the worst-case scenario, no cover at all. With clients having an increased focus on product quality, advisers are best placed to discuss the range of options available to ensure cover meets their individual needs and budget.
“The findings also highlight the importance of insurers and advisers working together to understand the wider challenges faced during the advice process. This will help insurers provide greater support that enables advisers to get the most out of every client conversation; whether it’s simplifying terms and conditions, delivering bespoke product training, or providing wider resources to overcome client objections.”
Earlier this month, the firm widened access to its income and life policies.
