HOW TO
COMPETE
WIN
&
Contents
Why and how you can compete
3
The price of convenience over advice
9
3 quote process
12
Other handy tips and tricks
17
The importance of adequate cover
21
Final thoughts
22
HOW TO COMPETE & WIN2
why
HOW
& YOU CAN COMPETE
These days, it seems
financial advice is seen as
less of a priority than the
need for convenience.
HOW TO COMPETE & WIN3
WHY AND HOW YOU CAN COMPETE
Consumers today
are bamboozled
by the promise of
saving time, effort
and money on
price comparison
websites (PCWs).
Meaning they often
forget to check that
they’re comparing
apples with apples.
So, how do you compete?
WITH THE HELP OF THIS GUIDE YOU’LL BE ABLE TO...
IDENTIFY WHERE THE
PROBLEMS LIE WITH
POTENTIAL CLIENTS
UNDERSTAND THEIR WAY
OF THINKING WHEN IT
COMES TO FINANCIAL
ADVICE AND GI
USE THE
TOOLS REQUIRED
TO COMPETE
HOW TO COMPETE & WIN4
The STATS
WHY AND HOW YOU CAN COMPETE
First let’s look at some of the results from our recent YouGov survey, which revealed some hair-raising stats about who
your clients are most likely to approach for financial advice over the next 12 months:
15%
My parent(s)
My sibling(s)
2%
4%
Other family member
11%
My partner/spouse
9%
Financial adviser or broker
High profile experts (e.g. Martin Lewis)
My friend(s)
My work colleague(s)
My employer
My tutor/mentor
4%
2%
1%
0%
0%
9% of peo
ple
would
b
seek fin e likely to
ancial a
dvic
from a
financia e
l
adviser
or brok
er
in the n
ext
12 mon
ths
29%
Other
Don’t know
Only
11%
Online forums (e.g. Money Saving Expert)
12%
HOW TO COMPETE & WIN5
WHY AND HOW YOU CAN COMPETE
of people have never reviewed their finances with a professional.
When asked their reasons for not recently seeking advice,
38% don’t think they need it.
WHY HAVE YOU NOT SOUGHT FINANCIAL ADVICE MORE RECENTLY?
(respondents selected all that applied to them)
38%
I don’t think I need advice
25%
I don’t want to pay for advice
19%
I think financial advisers are expensive
16%
I think that financial advisers are for people with lots of money
I don’t know where to find professional financial advice
I think financial advisers are just for other people
Not had the time
4%
2%
3%
9%
Not thought about it
15%
None of these
Don’t know
5%
HOW TO COMPETE & WIN6
WHY AND HOW YOU CAN COMPETE
Now...
Add GI into the selling mix, which is difficult when you consider only
5% of people would consult a professional broker or financial adviser.
WHEN BUYING HOME INSURANCE, HOW DO YOU PREFER TO PURCHASE IT?
37%
To shop around but then go direct to my chosen provider
32%
Purchase via a price comparison site
8%
For my policy to automatically renew with my existing provider
5%
To consult a professional broker/financial adviser
Other
Don’t know
2%
16%
HOW TO COMPETE & WIN7
WHY AND HOW YOU CAN COMPETE
The thing is people do
need advice, even if
they don’t realise it.
Last year a report by MoneySuperMarket revealed homeowners are
underinsuring their homes by a staggering £20,0001.
Value of home contents
ACCORDING TO
ACCORDING TO
£35,000
£55,000
HOMEOWNERS
INSURERS
This just goes to show the massive misconceptions people have when it
comes to their finances. In this guide, we’ve collated the knowledge and
tools to help you break down these misconceptions, and make it easier to
compete with price comparison websites.
www.financialreporter.co.uk/protection/brokers-shouldnt-neglect-essential-gi-for-underinsured-consumers.html
1
HOW TO COMPETE & WIN8
THE PRICE OF
CONVENIENCE
over ADVICE
HOW TO COMPETE & WIN9
THE PRICE OF CONVENIENCE OVER ADVICE
TheFINDINGS
Research into PCWs by the FCA2 found the way results were presented varied
across different sites. This meant that the findings weren’t always favourable.
2
Many PCWs were
considered clear and
transparent
They may be owned or
part of the same company
as the insurance provider,
making results biased
Headline price could
distract consumer from
crucial product features
Add-ons and options
weren’t clear or relevant
Unclear instructions about
the information needed
and how it affected the
outcome of the quote
Consumers believe PCWs
assess product suitability
based on individual needs
www.fca.org.uk/publication/research/price-comparison-website-consumer-research.pdf
HOW TO COMPETE & WIN10
FCA3 findings: PCWs don’t take the reasonable steps
to provide sufficient, clear and consistent info on the
following areas:
KEY
FEATURES
LEVELS
OF COVER
EXCLUSIONS
LIMITATIONS
POLICY
EXCESS
As a result, there have been cases where insurance cover
has let people down when they came to making a claim.
For example
A customer purchasing their home insurance through one of the wellknown PCWs could be let down by their cover when it comes to claiming
for an item, like a camera, lost on holiday. If their level of cover was
not explained properly, it could lead to lack of cover needed, such as
personal possessions (PP). If the customer has no PP they won’t have the
cover they need or indeed believed they had to claim for the camera.
The poorly presented information within PCWs means consumers can’t
make informed decisions because it’s not presented in a way that helps
them to do so. This then leaves them prone to being underinsured when
it comes to making a claim.
www.fca.org.uk/news/press-releases/price-comparison-websites-failing-meet-fca-expectations
3
HOW TO COMPETE & WIN11
QUOTE
PROCESS
HOW TO COMPETE & WIN12
3 QUOTE PROCESS
Top tip
If th
polic ere are tw
y
oldes holders, p o
t fi
ut
gene rst. As the the
r
older
consi ation are
often
dered
of an
to be
insur
ance less
risk.
Just like comparison
sites you can provide
different levels of
cover at different
prices, with the added
bonus of your advice
and guidance.
It’s up to you how you tailor the three steps but this example is a
good starting point. Give the following three quote process a go:
1. 2.
BASIC
COVER
WITH
ADD-ONS
3.
WITH
IT ALL
HOW TO COMPETE & WIN13
3 QUOTE PROCESS
1.
Fill this out with the basic cover, no
add-ons. Setting the Buildings excess
at £250 and the Contents at £150
(both of these are industry standard).
Click ‘Refresh quotes’.
This option will also show the client what they
should get for their money based on what
they select. While choosing this option will
give your client comprehensive 5* Defaqto
rated cover it may not have all the added
extras they would need or like. They might
not want to find the £250 excess if, or when,
they need to make a claim.
HOW TO COMPETE & WIN14
3 QUOTE PROCESS
2.
So, tweak the quote slightly, by adding
on additional cover like Accidental
Damage and Home Emergency Cover,
and by dropping the excess to
£150-£100.
For a bit of extra cash they get more
protection and don’t have to pay as much if
they ever need to make a claim.
HOW TO COMPETE & WIN15
3 QUOTE PROCESS
3.
Now, add everything on so they can
see the most comprehensive cover
available to them, again keep the
excess low and manageable.
The beauty of this three quote process is it
gives them a choice and you’ll be able to
discuss the benefits of each, matching the
right level of cover to the individual.
Flex it!
And, if you’ve access to it, there’s Premium
Flex for an added bit of flexibility to help
make the price even more appealing to
your clients.
This allows you to adapt the premium
price for your price sensitive clients, by
adjusting the commission level.
HOW TO COMPETE & WIN16
Make sure you check out the
Defaqto4 website to guarantee the
products your clients are comparing
are the same 5* quality.
www.defaqto.com/star-ratings/?id=46723
4
HOW TO COMPETE & WIN17
OTHER HANDY TIPS AND TRICKS
Why not...
INTRODUCE GI EARLIER INTO THE SALES PROCESS?
One broker decided to do this after his clients kept going away to
comparison sites for ‘cheaper’ quotes. By talking about GI sooner in the
process (before they went to comparison sites) he was able to advise them
on what to look for when purchasing home insurance.
For example
A good example, was trace and access. He explained that their insurance would
likely cover the work needed to fix a leaking pipe, but not the damage and mess
made to get to the pipe in order to fix it. The results he saw were great because
even if the client went away to compare quotes they were now equipped with the
knowledge they needed to find the best cover which led the clients to come back
to the broker in most cases.
HOW TO COMPETE & WIN18
Five
TIPS TO KEEP
YOUR CLIENTS
AWAY FROM
PCWs
1.
SELL THE
WHOLE PACKAGE
2.
COMPILE CLAIMS
EXPERIENCE
3.
TALK ABOUT
THE BENEFITS
Position GI up
front, as an
integral part of
the mortgage
process.
Having anecdotal
evidence of products
that have worked well
can often seal the deal
for customers who
are looking for added
reassurance.
GI customers need
reminding that the
cheapest home
insurance in the
world can suddenly
become very
expensive if it
doesn’t pay out.
4.
5.
Want more?
MAKE IT
HASSLE FREE
BEAT PCWS AT
THEIR OWN GAME
Remember, what a good adviser
For more details surrounding these tips
does is very much the same as
Customers will stick
follow this link5 to the case study: ‘Five
PCWs, except they match the
with advisers as long
ways to keep your GI clients away from
cover to the customer’s needs
as they make it an
and guarantee the insurer is
comparison sites’.
easy option.
reputable. Plus you’re there
to help out once the sale
www.paymentshieldadvisers.co.uk/Media/Default/documents/pdfs/
has gone through.
marketing/case_studies/00633_comparison_sites_case_study.pdf
HOW TO COMPETE & WIN19
5
YOUR CLIENTS WANT YOU
TO ARRANGE A MORTGAGE
IT’S YOUR DUTY TO PROTECT IT
PROTECTED
HOME
ACCIDENT
FIRE, STORM
OR FLOOD
SICKNESS
UNEMPLOYMENT
CRITICAL ILLNESS
DEATH
Help them avoid these 6 ways they could lose their home
HOW TO COMPETE & WIN20
THE IMPORTANCE OF adequate COVER
Use this printable page whenever you’re with a client to ensure they are getting the correct amount of cover for their home and its contents.
your details
NAME
CHILDREN? YES
NO
MARITAL STATUS
CHILDREN’S AGES
HOW MANY?
PERSONAL POSSESSIONS (in AND away from the home)
ITEMS
VALUABLES (WITHIN THE HOME)
cost to replace
ITEMS
cost to replace
GADGETS
JEWELLERY
LAPTOPS
MOBILES
(OVER £250)
WATCHES
sport
equipment
TOTAL COST TO REPLACE
£
TOTAL COST TO REPLACE
£
OVERALL PREMIUM
£
OVERALL PREMIUM
£
CONTENTS CALCULATOR LIST (ALL OTHER ITEMS IN THE HOME)
BUILDINGS COVER (REBUILD VALUE)
HOW TO COMPETE & WIN21
Final
THOUGHTS
As an adviser you
have the upper hand
when it comes to
PCWs as you can offer
the one thing they
can’t, personal advice.
HOW TO COMPETE & WIN22
FINAL THOUGHTS
You...
HAVE A DUTY OF CARE TO YOUR CLIENTS
Start bringing GI into your
sales process sooner; if
nothing else you need to
equip your clients with the
knowledge of the best cover
for them. That way, even if
they do decide to look at the
comparison sites they have
a better understanding what
they’re looking for. By doing
this you’ll likely find they come
back to you as they know
you’ve got their best interests
in mind.
Consumers can often be
distracted by the all singing, all
dancing ads they see without
realising that these sites may
not be as impartial as first
thought. Also these sites
don’t necessarily distinguish
between the products on
offer, so your clients could
be seeing a comparison of
lemons and apples, not apples
with apples.
Well known insurer brands
often remain the deciding
factor on PCWs; with the more
recognisable providers the
most likely to be selected,
even with higher costs!
Another area that you have
the ability to compete is by
offering a variety of quotes
from a variety of well-known
insurers, with the added
benefit of your advice on what
will suit their needs best.
HOW TO COMPETE & WIN23
thank you
Visit the marketing toolkit section of our website
to download the tools you need to compete:
paymentshieldadvisers.co.uk/marketing-downloads
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quality. © Paymentshield Limited 2017. 00784 (03/17).
HOW TO COMPETE & WIN24