Advice Vs Price
May 2010
A Life Search survey revealed that 76% of clients who call up for financial advice end up buying a policy significantly better or more comprehensive to that which they would have bought without advice and the same could be said of Buildings & Contents Insurance.1
The internet appears attractive to consumers as a quick and cheap way to arrange insurance cover but what the internet fails to provide is advice and that is your biggest USP! Customers who buy online don't realise that they may be over or under insuring themselves and are taking that risk on their own shoulders.
The value of advice
Where a cost difference occurs between intermediary products and direct products found online or on the high street this is because the price of a product arranged through you includes the cost of your advice paid to you as commission.
For example, Paymentshield have found that accidental damage is the main reason people claim on their home insurance and yet many internet based quotes won't include this unless the customer knows to select it, which is where your advice comes into its own. Therefore, what the client may be paying a little extra for is the peace of mind that comes with knowing they have adequate and appropriate cover in place should the worst happen.
All that glitters...
Unfortunately many clients become blinkered by the incentives the direct writers offer, not realising that these offers don't always provide as much value as they seem. However, by questioning and exploring these offers further you can still influence your clients buying choices. Just consider the two offers below:
Free Contents Insurance if purchased with Buildings Insurance
But just how much 'free contents' does the customer actually get? Some insurers offer this hook, but the product may be stripped down and offer cover as low as £10,000. We offer a 50% discount on our standard Contents Insurance when purchased in conjunction with Buildings Insurance, for your clients who have 5 or more years no claims and we provide cover up to £40k.
12 months cover for the price of 10?
Even if a 2 month discount is offered the client has 12 monthly payments to make. However Paymentshield take a different approach and offer a two month deferred payment period with our FreeFirst Home Insurance product, meaning your clients make no payments for the first two months from the start of their policy. Perfect if your client is moving home (which can be a particularly expensive time) or simply wants to take advantage of a little extra cash for two months.
When price is everything
For those clients who are purely driven by price rather than value then you can now offer them a Price Match service. This offer has recently been extended until the 14th June. For eligible clients2 this means if Paymentshield's BestQuote Home Insurance price doesn't already beat the price your client is currently paying elsewhere, you can match their cover on a like for like basis and offer a reduction of up to £85 from our original premium.
You can tell your clients that we're not on any comparison websites because we believe that you, the intermediary, are best placed to ensure clients get the cover that meets their needs. We offer quality cover and were chosen above the likes of direct providers such as Direct Line, Churchill, HBOS, LV and Privilege to be awarded Best Home Insurance Provider Award by What Mortgage Magazine in 2008 and 2009.
1 www.lifesearch.co.uk 'The True Value of Financial Advice' 15th September 2009
2 Certain postcodes may be classed as high risk for which Price Match is not available. The minimum Paymentshield Buildings &/or Contents premium available following a Price Match is £100 per annum (excluding Insurance Premium Tax). Paymentshield Home Insurance is a monthly policy with premiums payable by monthly direct debit The offer of insurance is subject to eligibility requirements and full terms and conditions. You must currently hold home insurance with a provider other than Paymentshield and have been claim free for at least 12 months. Paymentshield reserve the right to request a copy of your current insurer's renewal notice, current insurance schedule, certificate or proof of premium at any time. Offer available until 14th June 2010. Full policy terms and conditions are available on request.
This page is intended solely for the attention of Directly Authorised or Exempt Firms as defined by the Financial Services Authority.