Sharing the limelight
Examining some of the activity in the market around added-value services could indicate the role they might play in future product design. Vitality has incorporated these benefits more than other insurers, but it still sees the insurance as having a key role. “A lot of our policyholders do focus on the health and wellbeing benefits, but the proposition is as much about insurance,” Mr Jobanputra says.
“Insurance is not the most exciting topic, so offering these added-value benefits helps to engage consumers.”
Another area of the market hoping to make more of added-value benefits is income protection. Although its primary purpose is to provide a replacement income, claimants and potential claimants benefit from rehabilitation and support services that can help them return to work.
The value of these services was highlighted in the Seven Families campaign, as Ms Gilchrist explains: “The feedback from the families was that the financial support was secondary to the assistance they received, with this helping some of them return to work. The individual income protection insurers should market these services more: it is about providing good outcomes to consumers.”
This is in keeping with Mr Edwards’ views, too. Although he can see the merit in putting the added-value services at the heart of the product, he believes the switch will be subtle. “Over the next 10 to 15 years, the added-value benefits will become core. The product should never depart from its purpose to protect someone, but I believe we will see added-value benefits sold that include life insurance,” he says.
Whether or not the added-value services do take up the role of core product, the benefits they offer in terms of engaging consumers mean the protection industry should definitely make them a more central part of its marketing message.
