1. Making Direct Protection Insurance Sales Work
David Buckingham
July 2016

2. Current Situation IFA Mass Market State
Health Warning: Very broad brush, simple definitions

3. Potential
Now

4. To pay off my mortgage – 58%
Target Market
Families who don’t or won’t use traditional intermediated channels
‘Whose responsibility is it to provide financially if I die or become seriously ill’?
Myself or my family – 75%
Very Important – 60%
‘How important is Life Insurance’?
Yes – 45%
Car Breakdown Cover – 56%
Pet Insurance – 47%
‘Do you have Life Insurance’?
‘Why do you have Life Insurance’?
To pay off my mortgage – 58%

5. Excuses, excuses, excuses!
Why they do and why they don’t
‘Peace of mind’ – 73%
Not tangible – No car insurance, can’t drive
Less than 1% chance of using, but massive impact
Difficult sale!
Excuses, excuses, excuses!
‘Cant afford it/poor value for money’ – 45%
50% don’t actually know the cost
Complicated, don’t know how or where

6. But can we really do it? The basics are in place: Target Market 
Opportunity 
We’ve done it before – Over 50 Plans:
Simple Proposition
Affordable Premiums
Selling to a defined funeral need

7. How for Term Insurance?

8. Take an IFA Proposition and offer direct - No
Simple
Take an IFA Proposition and offer direct - No
Proposition – Easy to understand
No bells and whistles – Complexity and choice = confusion
Simple Critical Illness – 3 illnesses, fixed level of benefit
Journey – Simple
Simplified Underwriting with an instant decision
Multi-device responsive website, with telephony back up
Surprise and delight – Added extras
Winston’s Wish
Free Gift

9. Big and Brave
Be Brave
Nobody will get it right first time – test and learn strategy needed:
Multi-Channel marketing
Interactive tools
Be positive – Marketing messages should normalise protection
Be Big
Marketing costs versus benefits can be a challenge – SunLife £40m

10. Will it work
YES!
Why?
Always be customers who want to do it themselves
Some customers need a nudge, they won’t go looking
We simply can’t afford to get it wrong
Compliments what's already in place through intermediaries