Why protection perfection does not exist

What is perfection?

At times in life, it can seem to be more of a quest than a question. With the seemingly endless amount of time we can all spend (or waste) on social media, you don’t have to look too far before you find a version of perfect. It could be an influencer sharing their perfect lifestyle. It could be a lifestyle coach sharing the perfect routine for high-performing individuals – a routine which usually seems to involve ice baths and endless amounts of self-reflection.

The reality is perfection is a concept that is almost always not based in reality.

In almost every aspect of our lives whether we seek perfection or not, we must accept compromise. From relationships to homes, compromise is what the world is built upon. When compromise breaks down, so do relationships. So do partnerships.

A Thought-Provoking Challenge

Our own Stephanie Hydon recently presented the excellent Protection Review – to challenge the concept of perfection vs pragmatism within the protection market, and whether a perfectionist approach was the enemy of growth. It was a thought-provoking topic, one which simply demanded me to sit down and write the perfect article to accompany it. This alone is my 20th separate attempt (**jokes**).

Complex Product Design

So, I began by thinking about all the ways that we have strived for protection, at the expense of progress or perhaps evolution. The first that immediately springs to mind is in product design. There is a very live debate within the market on whether products themselves are too complex, almost too comprehensive (or perfect?)– which in turn reduces the level of adviser understanding and confidence – and often lengthens the advice and application process.

In my view, there is some truth here – but as with almost everything, the answer isn’t binary. Yes, products are complex, yes many advisers would largely welcome a simpler approach to product design and yes, in places the cover products deliver might be beyond consumer expectations, but to an extent this comes as a result of the complex nature of our customer needs and desire/need to tailor solutions that fit perfectly.

The next challenge is on premiums, or the actual cost of cover.

The UK is probably the most price competitive protection market in the world. A race to the bottom on premiums which doesn’t at present show any sign of stopping.

But is this race for the ‘perfect’ price the right thing to drive market growth? Or is it hampering development in other areas and suffocating product and process simplification and other innovation? That’s a genuine and live debate.

Collaboration for Growth

Finally, and perhaps most pertinently, I wanted to view the topic of perfection when related to how we, as a market, collaborate with one another to achieve the greater good – growth and more people with secure financial futures.

What is clear is that despite best intentions and a huge amount of passion and massive engagement across all sectors, protection has refused to grow as we would like. There is no shortage of new initiatives, all in their own way designed to help tackle this status quo, but as yet no
silver bullet.

But do we collaborate in the way we should?

Do we connect initiatives to deliver maximum impact?

Are we as aligned as we could be to ensure that all ambitious programmes and developments are complimentary and not contradictory?

That’s a question that no one person can answer.