How value-added benefits are revolutionising advice
Consumer Duty celebrated its first birthday at the end of July and the impact of the regulation on the protection industry appears to be overwhelmingly positive.
Value has become much more central to advice and cover selection. Conversations have gone beyond a focus on premiums, with an additional lens on added value services and ancillary benefits.
I want to look at the transformative power of value-added benefits (VABs), when and how to introduce them and their real-world impact on clients.
Consumer Duty has urged advisers to move beyond transactional relationships and embrace holistic conversations with clients.
According to FCA research, 43% of advisers have refined their approach, demonstrating the industry’s commitment to delivering fair value and acting to avoid causing foreseeable harm. The emphasis has certainly broadened into the comprehensive solutions and added services protection can offer.
Making VABs real
Advisers understand the potential of VABs and many have become ambassadors for these benefits. Through meticulous documentation and thorough client education, advisers can enhance the value proposition of protection products, aligning themselves with the principles of Consumer Duty.
By providing additional value beyond the core product or service, VABs can increase client retention, elevate the customer experience and foster brand loyalty.
Influence on perception
VABs have emerged as potential cornerstones of protection propositions, significantly enhancing the perceived value of products, while still typically being a non-contractual benefit.
With services available, such as 24/7 digital GP appointments, second medical opinions and mental health support, VABs can empower clients and their families, positively impacting their wellbeing.
Evidence of efficacy
Research we have undertaken demonstrates the effectiveness and timely delivery of VABs.
Flexibility is exemplified by the fact 36% of GP appointments are made outside standard working hours, ensuring clients have convenient access to essential medical assistance.
Impressively, 90% of GP appointments are achieved within three working hours, showcasing the efficiency and responsiveness of VABs.
What’s more, mental health appointments are delivered promptly, with 95% taking place within two days. Second medical opinions are obtained in 95% of cases within 10 days, providing peace of mind and valuable insights into healthcare decisions.
Benefits of prevention
VABs not only offer reactive support but can also promote preventive measures. By focusing on proactive care, these benefits encourage clients to prioritise their wellbeing and take preventative action for a healthier future.
Since the inception of Consumer Duty, advisers have navigated a challenging regulatory landscape while striving to deliver exceptional outcomes for clients.
Through clearer communication, diligent product selection and meticulous processes, advisers have elevated the standards of protection advice. Tools such as sales aids, factsheets and explainer videos are readily accessible for advisers – and clients – to assist with the effective delivery of this advice.
Looking ahead, the role of VABs becomes even more apparent – potentially transforming the market, empowering clients and unlocking the true value of comprehensive financial protection.
