"It’s reassuring to see that workplace protection advisers also recognise an opportunity to attract SMEs to our market."
In a study with over 100 protection advisers, Canada Life has found that more than half of advisers say SMEs are citing cost as their greatest concern in the coming months.
Over half (55%) of workplace protection advisers have cited cost pressures on SMEs as their top concern for the forthcoming year.
The new research by Canada Life – conducted at the start of the year among 135 advisers – also showed that cost pressure challenges were closely followed by ongoing economic uncertainty (53%), with nearly half (45%) believing this will reduce the amount of business they write over the next 12 months. An additional two-fifths (42%) cited concerns about how costs will impact their fee revenues.
However, survey respondents said that the greatest opportunities available to them were the increased focus on health and wellbeing (76%), followed by the increase in flexibility of benefits (43%), and the adoption of new technology (38%).
While price was of a high concern to SME customers, advisers’ most-searched benefit was service – with three-quarters of advisers choosing this option. After this, price (74%) and added value services (62%) took second and third place.
Dan Crook, protection sales director at Canada Life, commented: “Whilst I understand advisers are suggesting that SMEs will be under greater cost pressures, which presents a risk to our industry, I also feel that employers’ and employees’ awareness of our solutions have been heightened as a result of Covid-19. So, it’s reassuring to see that workplace protection advisers also recognise an opportunity to attract SMEs to our market.
“It also makes sense that advisers see a significant opportunity in the health and wellbeing space. The pandemic has put this at the forefront of the global agenda, and the protection industry has readily met the changing needs of the UK’s workforce and their families during the toughest of times.
“Looking ahead, we, as an industry, must work to continue developing our propositions to ensure advisers have the right tools in place to help employers and their employees get the support they need, when they need it.”
