Over the past 15 years or so the protection industry has gradually increased its recognition of the importance of commonly called 'value-add services'.
Back then, there were perhaps one or two providers and the idea of including such services was for the most part viewed with scepticism and suspicion about the motives of insurers. How things have changed.
Today there is a wide range of services under the value-add umbrella, including GP services, health assessments, physiotherapy, mental health services, personal nurse support, to name but a few. Virtually all UK protection products now offer at least one value-added service and many offer a suite of them.
I suppose initially the reason that insurers invested in additional services was to differentiate themselves from competitors, and if not initially the intention it became increasingly clear that these services gave insurers the opportunity to provide more value than just the promise of money should the worst happen.
The inclusion of good quality value-add services allows the industry to move from providing financial peace of mind to providing a much wider proposition to help customers proactively manage their health and get the right help promptly when required.
David Mead, chief executive of Futureproof, says: “We find it incredibly important to develop the conversation beyond an insurance policy. A quality proposition with a good added-value service moves the discussion to quality versus price.”
With the building blocks now in place, the time is right to leverage the value in value-added services.
Building trust
The insurance industry as a whole has worked hard to increase consumer trust over the years and I believe that a significant advantage from the growth in value-add services has been a contribution to increasing consumer trust.
With nurses and doctors in the top three most trusted professions according to the annual Ipsos Veracity Index, it is clear that a good quality service provided by qualified professionals enhances customers’ perception of insurers.
This is backed up by our research tells us that consistently more than 93 per cent of customers using our service have an enhanced view of their insurer as a result.
Customer impact
Feedback from customers using value-add services has demonstrated the impact and the importance they place on them. It is no exaggeration to say that for many customers the non-financial support they receive is life-changing, and it is not unusual for us to hear that the support a customer has received was more valuable than the money itself.
Commenting on value-added services, Tracey Clarke, one of the recipients of the Seven Families income benefit, says: “They are one of the many bonuses of income protection insurance that are so valuable above and beyond the financial aspects of such policies.”
