Quarterly Q&A

We recently spoke to Emma Vaughan, Head of Protection and Health Solutions at simplybiz who shared her views on the importance of advisers adopting technology to support the sale of protection products in the UK.

Emma, technology plays a pivotal role in the protection advice process. We’re interested to hear your thoughts on this and the challenges we face.

In an industry as dynamic and essential as financial advice, the adoption of technology has transformed how advisers operate.

While this shift has been evident across various financial services, the sale of protection products in the UK stands to benefit significantly from greater integration of technology into the advice process. By enhancing efficiency, accuracy, and client engagement, technology is not just a tool for modern advisers, it is a necessity.

The UK protection market is experiencing growing complexities. Increasing regulatory demands, evolving customer expectations, and heightened competition all contribute to a challenging landscape for advisers. Customers now expect streamlined, digital experiences akin to those offered in other sectors, and advisers must meet these expectations without sacrificing the quality of advice.

Traditional methods of selling protection products often involve time-intensive manual processes, which can lead to inefficiencies and delays. Additionally, many advisers face challenges in demonstrating the long-term value of protection products to clients. Technology can bridge these gaps, offering solutions that enhance both the client and adviser experience.

What are the key benefits of adopting technology to enhance the sale of protection products?

By adopting technology, advisers can transform how they deliver advice, making the process more efficient, personalised, and transparent. There are several benefits on how technology supports the advice process:

01
Streamlining Fact-Finding and Onboarding

The initial stages of the advice process often require gathering detailed client information, which can be labour-intensive. Digital fact-finding tools simplify this process, enabling clients to input their data online before the first meeting. This not only saves time but also ensures accuracy by reducing the potential for errors in manual data entry.

Moreover, technology can integrate compliance checks into the onboarding process, ensuring advisers meet regulatory requirements from the outset. This reduces administrative burdens and allows advisers to focus on delivering quality advice.

02
Personalised Client Engagement

Technology empowers advisers to deliver a more tailored experience by leveraging client data and analytics. Customer relationship management (CRM) systems help advisers segment their client base, understand individual needs, and provide customised recommendations.

For example, a client in their thirties with a young family may benefit from critical illness cover, while a single professional in their twenties might prioritise income protection. By using data-driven insights, advisers can present relevant options that resonate with clients’ unique circumstances and goals.

03
Improved Product Comparisons

Protection products often come with a range of features and pricing options, making it difficult for clients to compare policies effectively. Quotation platforms and comparison tools provide advisers with a comprehensive view of available products, helping them identify the most suitable options quickly.

These tools also allow advisers to illustrate complex concepts, such as premium structures or coverage terms, in a way that clients can easily understand. This transparency builds trust and confidence in the advice provided.

04
Efficient Document Management

The sale of protection products generates substantial paperwork, from application forms to policy documents. Document management systems streamline this process by digitising and centralising files. Electronic signatures further enhance efficiency, enabling clients to complete documentation remotely.

This not only saves time but also reduces the environmental impact associated with printing and mailing documents.

05
Boosting Persistency Rates

One of the biggest challenges in the protection market is policy cancellations. Technology can help address this issue by automating follow-ups and providing timely reminders to clients. For instance, advisers can set up automated communications to check in with clients after a policy is sold, reinforcing the importance of maintaining their coverage.

Additionally, client portals and mobile apps give policyholders easy access to their policy details, payment schedules, and value-added benefits. By fostering ongoing engagement, advisers can improve persistency rates and strengthen client relationships.

06
Enhanced Compliance and Reporting

Regulatory compliance is a critical aspect of the advice process. Technology simplifies compliance by automating record-keeping, generating audit trails, and providing templates for suitability reports. This reduces the risk of errors and ensures advisers meet FCA requirements with minimal disruption to their workflow.

So it’s clear to see the many benefits of technology. How else does technology add value and how can we overcome barriers to adoption?

Another crucial area where technology adds value is client education. Protection products are often misunderstood or undervalued, and advisers play a vital role in bridging this knowledge gap. Tools such as interactive calculators, explainer videos, and virtual presentations help clients visualise how protection products work and why they matter.

For example, a digital tool that demonstrates the monetary impact of losing income due to illness can help clients grasp the importance of income protection. By making complex concepts accessible, advisers can empower clients to make informed decisions.

Despite its benefits, technology adoption in the advice process is not without challenges. Common barriers include cost, resistance to change, and the perceived complexity of implementing new systems.

However, these obstacles can be overcome with the right approach:

Training and Support: Advisers should receive training to understand how technology can enhance their work. Providers and networks can play a key role in offering ongoing support and resources.

Cost-Effective Solutions: Many technology providers offer scalable solutions tailored to the needs of smaller firms, making adoption more affordable.

Emphasising Long-Term Gains: Advisers should view technology as an investment in their future. The efficiencies gained can lead to higher productivity, improved client satisfaction, and increased revenue, payment schedules, and value-added benefits. By fostering ongoing engagement, advisers can improve persistency rates and strengthen client relationships.

Thank you Emma. Looking ahead, the future is very much technology-driven…

Yes absolutely, as the UK protection market continues to evolve, the role of technology in the advice process will only grow. Advisers who embrace digital tools will be better positioned to meet client expectations, navigate regulatory requirements, and remain competitive in a changing landscape.

The adoption of technology is not about replacing human expertise, it is about enhancing it. By leveraging technology, advisers can focus on what they do best: building relationships, understanding client needs, and delivering tailored solutions. In doing so, they will not only future-proof their businesses but also help more people access the vital protection they need.