Paymentshield has published a white paper which provides a overview and analysis of the risks when customers choose to buy from aggregator sites rather and seeking advice, whilst also identifying the opportunities this creates for advisers in today’s market.
Entitled ‘Why price comparison sites don’t have all the answers’, the white paper brings together the factors that have given rise to price comparison websites (PCWs) and assesses how they are changing consumer behaviour. The research also explains how and why buyers are led down the path of potentially purchasing policies that may not actually meet their needs.
In the white paper, Paymentshield highlights the fact that aggregators encourage customers to focus on the price of the insurance they’re buying rather than suitability. This means that consumers are failing to see the value in professional advice and therefore have little understanding of the policies they are purchasing.
Furthermore, the white paper investigates how PCWs are impacting the prices of policies, driving low cost – and more often than not, lower quality – policies to the top of their rankings. It also highlights that, as a result, some providers are adapting their products to get noticed on the sites, at the cost of consumer transparency.
The Paymentshield research concludes by emphasising the benefits of the one thing PCWs can’t replicate – the value of enlisting the expert guidance of an adviser; it uses research from industry bodies to make the point that it’s more important than ever for homeowners to ensure their policies are an accurate reflection of their needs and expectations.
James Watson (pictured), sales and marketing director, said: “Consumers’ will generally lack a full understanding of their insurance policy wording. This confusion, combined with the aggressive and manipulative marketing strategies of aggregators, frequently leaves people taking an ‘educated guess’ when it comes to what product is right for them which ends up leaving many Home Insurance policyholders up and down the country frustrated and disappointed in their hour of need.
“The value of advice cannot be underrated, meaning that financial advisers of all types need to understand and keep abreast of the general insurance market. They need to feel confident overcoming customer objections when they say “they can find it cheaper online” and educate customers about the savings they can provide in terms of reduced time, effort and stress. As an industry, we need to be instilling trust in our customers that we offer the best value policies, instead of just the cheapest.”
Download the whitepaper here: www.thecompletecircuit.co.uk/whitepaper/