"Our ongoing commitment is to better understand the expectations and pressure points of our customers and tailor our new and existing offerings accordingly. It’s essential too, that we do so in partnership with advisers and, together, we provide the all-round holistic support our customers deserve."
- Justin Harper, head of propositions at MetLife UK
MetLife UK’s meaning of value research asks the question: In an era of Consumer Duty, what matters most to clients when buying protection? With less than two months before the Financial Conduct Authority (FCA) implements the new Consumer Duty regulation at the end of July, it considered products & services, consumer understanding, consumer support, and price & value.
Of those surveyed (2,000), 72% said that protection which pays out quickly and efficiently is the most important indicator of ‘good value’, followed by meeting the consumer’s protection needs (67%), and offering ‘broad coverage’ (67%). However, despite these priorities, those surveyed highlighted that advisers often fail to discuss how policies best meet the consumers’ needs, indicating an awareness gap between adviser and consumer perspectives on fair value.
Likewise, diversity of products, providers, and services was considered an important indicator of ‘good value’ (41%), increasing to 58% of those surveyed who’d purchased protection through an adviser, and further still to 63% of those who’d purchased protection through an adviser in the last two years.
MetLife UK believes that with “variety, choice, and appropriate cover all high priorities for clients, expanding your product portfolio could provide the value your clients are looking for at a time when it has never been more important.”
Meanwhile, the cost of protection was identified as least important, with only 62% seeing low or lowest monthly premiums as providing ‘good value’. This was especially true among those who’d purchased protection through an adviser in the last two years.
Commenting on the findings, Justin Harper, head of propositions at MetLife UK, has said:
“With the introduction of the FCA’s new Consumer Duty less than two months away, our research clearly highlights how consumers perceive “good value” when considering financial protection.
“Unsurprisingly, speed and efficiency of claim payment is a top priority for protection customers – the point of claim is their moment of truth. While we can improve even further, we’re proud that in Q1 2023, we paid 90% of all claims within just 5 working days.
"Our research also points to consumers wanting and valuing greater diversity. So, it’s vitally important that we, and the protection sector, continue to challenge ourselves to improve and innovate. To deliver good value, our products and services need to reflect and anticipate the ever-changing lives and evolving needs of our customers."
