Katharine Moxham, spokesperson for GRiD, adds that it is not quite so clear-cut as putting in place new definitions. “There’s lots of crossover and complexities. Advisers are legally obliged to put through the claim, even if they have no expectation that it will be paid. These are complex cases and people experienced in group risk understand this,” adds Moxham.
Finally, it is worth noting that the fear factor perhaps is not the only thing holding back growth in the SME market. For those already established in the group market and with large clients on their books, the SME market might not seem – on the face of it - financially viable.
McLoughlin says: “We’ve worked out how to do it. It involves fees rather than commission – and insurers are generally happy to pay either – plus it involves looking at all other opportunities in SME businesses.
"Basically, you’ve got new individual clients too, with mortgage needs and wealth management needs. This is in addition to cross-selling opportunities around key person and other business protections.”
Support and training
The CII’s GR1 course, developed in conjunction with GRiD, is an absolute must for anyone looking to enter this market. After that, there is plenty of support available on an ongoing basis.
All the big group risk insurers provide their own support and training, including webinars and show ‘n’ tells using real-life stories to help bring the products – and the problems they solve – to life.
Also, GRiD provides training for its members, the majority of whom are advisers in the group risk space. The industry body launched a training academy in 2018 offering basic level training for those new to the market.
This looks at group risk in its entirety, including legislation and taxation with regard to the contract. GRiD also offers advanced training, which focuses on taxation and trusts for group life. This is for advisers who are more experienced and are looking for more technical knowledge.
In short, the training and support is available. SME employer doors are open. The wellbeing and protection need is indisputable. Plus, insurers are usually happy to pay commission or fees.
And if the fear factor won’t go away, you can always hook up with someone more experienced and signpost business. So, what are you waiting for?
Kevin Carr is managing director and Suzanne Clarkson is associate consultant at Carr Consulting and Communications
