The rental market in particular is seen as a growth market going forward as it hasn’t received much attention from an IP perspective to date.
Richard Sadler, head of retail protection proposition at Zurich Insurance, said: “Perhaps we’ll see a push to broaden the appeal of the product to a wider range of customers – for example renters – and to improve the underwriting experience to make it an easier product to buy.”
This view is also held by other product and service providers, including iPipeline: “Focus on high net-worth clients in the renters market, there is a great opportunity here,” says Jenny Burt, marketing manager at iPipeline, which last year launched SolutionBuilder, which allows advisers to compare both simple and complex protection solutions according to client needs and budget.
There also seem to be many other potential opportunities that have yet to be explored. Ms Burt adds: “When employees leave work, do they understand what cover they have lost?
"When setting up a business, the account manager within the bank is likely to sell protection cover, but what about when someone sets up a limited company with an accountant, can/will they prompt the client to look at protection cover?"
Tom Conner, director at Drewberry Insurance, adds that imminent reductions in state incapacity benefits provide another conversation opener.
Under the new Universal Credit regime, to be introduced on 6 April 2017, the limited capacity for work element will be abolished to mirror changes to Employment and Support Allowance.
This reduces support for those deemed capable of some work-related activity from £5,312 to £3,801 a year.
“Naturally, this provides another opportunity to set out the case for IP,” Mr Conner adds.
Helping clients understand the probabilities of various life events could also go a long way towards articulating the importance of IP.
Ms Gilchrist says: “It’s important to help customers understand various probabilities. For example, before the age of 65, what is the probability of you dying or being off work long-term sick or injured?
"The latter represents the highest probability yet sales of life insurance hugely outweigh sales of income protection.”
Such figures are indeed revealing. At age 40, the average worker faces only a 14 per cent chance of dying before age 65 but a 21 per cent chance of being disabled for 90 days or more, according to the Insurance Information Institute, November 2005.
Kevin Carr is managing director of Carr Consulting & Communications and chief executive of the Protection Review
