At a recent industry event, a question was asked about why protection insurers provide so-called ‘added value services’ on policies like life cover, critical illness and income protection.
The premise was they add cost and complexity – and as they are outsourced, they cannot be contractually guaranteed for the life of the policy, often 20, 30 or 40 years.
Such services can include free access to GPs, expert second opinions, screening, cancer treatment, counselling services, debt counselling, global treatment, preventative and diagnostic services and more.
The reverse premise is that if you broke down on the motorway and the AA sent you a cheque, it wouldn’t be very helpful.
The services are available during the life of the policy, not just at claim stage, and of course, we still have the debate about what the services are called. Some prefer ‘health and well-being services’ or ‘support services’.
I’m not sure the name matters too much to consumers – it’s how they are communicated and how they are understood (and reminded) that is more important, as well as how easy and reliable they are to use.
And in some cases, there is duplication. For example, if you have more than one policy it is possible to have several different GP apps across different financial services providers.
However, the clarity of a collective name would be beneficial when it comes to the government, which places far greater value on the industry helping to get people back to work than just giving them money.
Customers won’t remember a name. But if it’s mentioned often enough, they will probably remember having access to a free GP service
The TCF regime that preceded the Consumer Duty required that core products delivered value by their very nature, a fundamental aspect of fair treatment being ensuring that our customers receive reasonable value in return for the premiums that they pay.
So, if we talk in terms of “Support Services” this term is speaking directly to and anchored in the Consumer Duty support outcome. This is an area where the individual market could learn from the group market in terms of placing greater emphasis on vocational rehabilitation.
Customers won’t remember a name. But if it’s mentioned often enough, they will probably remember having access to a free GP service. Or a counselling, screening or cancer support service. And once they’ve used it, data suggests they will use it again and again.
To be frank, the ‘added value services’ moniker underplays the important role they serve
When writing this piece, I was told that 31% of GP consultations are taken out of normal working hours, and if your GP is anything like mine that’s a huge benefit. But it’s not just GP appointments – depending on the circumstances these services can provide ongoing support for many months if not years.
To be frank, the ‘added value services’ moniker underplays the important role they serve. The right one, at the right time can help someone beyond the financial benefit that protection cover typically brings. They can offer faster/easier access to support that can accelerate treatment and drive better patient outcomes, fundamentally changing outcomes for the better.
If 75% of all cancers were diagnosed at stage 1 or 2, it would save 55,000 more lives per year.
Protection advisers should see ongoing advice review as an opportunity
Providers of these services each have their own statistics and moving stories about how early interventions made the difference, how treatment was accessed sooner, how stress was reduced, money was saved, and how they can complement the role of the employer as well as the NHS.
Rich people buying insurance to help keep them rich is of far less interest to Government than getting people back to work, something that is costing billions as record numbers of people are off work with long-term conditions.
Supporting clients is not just a role for insurers and the providers of support services – financial advisers often have an important role to play too. And when speaking to younger people – and potential clients of the future – these benefits are of far greater interest than plain old life insurance.
All in all, it strikes me that we help because we can.
The protection industry is in a strong position to help people not just with money – but with a range of care and support services that many people may not get elsewhere or even know exist.
If it were you, the reader, claiming on a policy right now – would you want access to some of these services?
We are in a great position to help people when they need it most. So, let’s keep doing it.
Kevin Carr is managing director at Carr Consulting and Communications and chief executive at Protection Review
