"Also, with more people turning to price comparison websites to get quotes quickly, there is a perception that advisers are being replaced with these platforms. "
FR: As head of GI intermediary at Legal & General, what does your day-to-day role involve and what is your relationship with L&G’s intermediary partners?
I am responsible for the distribution of Legal & General’s full range of general insurance products via intermediaries. Intermediaries are and will always remain a hugely important channel for Legal & General, accounting for a significant proportion of our protection and general insurance business. As a result, much of my day-to-day activity involves developing and strengthening the important relationships we have with our partners in this channel.
FR: What do you think are the biggest issues facing advisers and providers in the general insurance market?
There are a number of issues facing advisers and providers in the intermediary market. At Legal & General we are able to provide a unique perspective as we operate as both a manufacturer and distributor of GI products.
For instance, the Mortgage Market Review resulted in a big shift for intermediaries and consequently lengthened the mortgage application process. intermediaries now have less time to focus on associated insurance products, such as property or contents insurance, which homeowners may find valuable to have in place. For many clients, the problem we face is that the last thing they want to do after an extensive mortgage application process is to begin the think about purchasing home insurance. This is a major issue and mortgage intermediaries could play a key role in raising awareness of the importance of insuring their clients’ new homes.
This problem is exacerbated by the fact that many consumers simply do not have enough time to consider how general insurance products can provide them with financial security, should something happen to their property.
Also, with more people turning to price comparison websites to get quotes quickly, there is a perception that advisers are being replaced with these platforms. However, intermediaries should not underestimate the value these sites can bring. They still have an extremely important role to play in the market, engaging customers with insurance. Intermediaries then need to make sure their client understands the value of advice and how they can help their client get the right product for their circumstances.
FR: How is technology improving the general insurance industry?
In the age of digital disruption, businesses across all industries are using technology innovation to offer customers experiences well beyond what they have traditionally come to expect. However, for many, purchasing home insurance continues to be an intensive and tedious process, and in some cases the journey has become longer.
It is vital for insurers to take advantage of technological advancements, as well as the wealth of data they have access to, in order to ensure consumers have better journeys, whilst also making the route smoother and more efficient for advisers. In many cases, advisers are having to focus their efforts on making sure clients have disclosed the correct information on insurance applications, rather than providing advice on products. Using technology to help streamline the process will help alleviate this issue and will no doubt help the industry as a whole.
Legal & General is at the forefront of this technological innovation. We are the only insurer globally to offer SmartQuote - an accurate home insurance quote based on 5 questions that takes just 90 seconds to complete. Using 'Big Data' we have removed the need to ask customers questions they are often unclear on, such as construction or year built, therefore simplifying the claims process.
We also launched Smart Claims, which allows customers to complete claim information online via any device and include photo or video footage of damage, enabling claims advisers to provide immediate settlement of simple claims.
We look forward to developing further innovations, which will ultimately help our intermediary partners to ensure their clients have protection in place to meet their needs.
FR: Is there a role for mortgage advisers in ensuring customers are fully aware of their general insurance needs?
We are passionate about educating mortgage advisers on the importance of general insurance and helping them to develop their business. We recognise advisers play a vital role in our industry and believe that greater knowledge and an efficient sales journey is the key to success. Our dedicated business development team offer advisers a range of education and support services. This includes CII accredited general insurance masterclass workshops and our general insurance webinar series, which explains our products in detail and the opportunities available to advisers.
FR: If you could see one headline about the general insurance market this year, what would it be?
'Legal & General disrupts the intermediary GI market'.
