The Protection Distributors Group has released a guide aimed at financial advisers who want to introduce their clients to specialist advisers for protection products. The guide focuses on introducing clients who have a need for protection and underlines the importance of trust in any long-term relationship.

Protection Distributors Group suggests that advisers should be clear on the reasons why they don’t write protection business themselves and understand which product areas they are going to hand over. Advisers should carry out background checks on potential partners and agree on the following:

• Agree on the operating model
• Service levels
• Remuneration model with the partner
• Establish who will take responsibility for needs analysis and advice given

The guide also highlights the importance of ongoing reviews and regular discussions between both parties to ensure the quality and frequency of the leads introduced, as well as the client outcomes and feedback.

By following the Protection Distributors Group guidelines, advisers can help their clients find suitable protection products while also maintaining a valuable ongoing relationship with them.

But why is referring a client to a specialist life insurance broker important?

• Firstly, life insurance can be a complex product. A specialist broker will have the knowledge and expertise to help clients navigate the various options available, and find the best policy to meet their needs.

• Secondly, a specialist broker may have access to policies and providers that are not available through other channels. Resulting in better cover or pricing for the client.

• Thirdly, referring a client to a specialist broker can help ensure that the client receives appropriate advice and recommendations. That is aligned with their specific needs and circumstances.

This is particularly important under the new consumer duty regulations. Which requires financial service providers to act in the best interests of their clients. Demonstrating that advisers are fulfilling their duty. To act in the best interests of their clients and provide them with appropriate advice and recommendations. It can also help to ensure that clients have access to the best possible cover and pricing for their life insurance needs.

But what if an adviser argues against referring their clients with the following concerns?

• The relationship between my client and referral partner may not be as trustworthy as it seems
• The referral partner may not have the same level of care as myself
• There may be issues with the level of communication between the two parties. Leaving advisers feeling confused and unsatisfied with the service they are receiving

Trusting a referral partner to support your client can be daunting.

As the above concerns are raised. It can be hard to refer your client and at the same time feel reassured that they are receiving the full support needed. The Protection Distributors Group have a process on vetting a referral partner below:

• Check ‘verified’ reviews – verified reviews are from certified customers. The data is automatically processed through the ‘said’ review platform once cover is in place. So, you know that these reviews reflect the broker accurately
• Test the customer service first-hand. Conduct a test at random with a protection adviser, see how long it takes for someone to get in touch and the level of support you are provided
• Check out case studies. Sometimes you just need examples to help with understanding the capabilities of the broker. Case studies are a terrific way to understand the level of support a broker will go to for the client
• Ask your clients to feedback on the service provided. Getting first-hand advice is a reliable source for peace of mind

It’s understandable that advisers may have concerns about referring their clients to a specialist for protection products. However, it’s important to note that the Protection Distributors Group can help advisers introduce their clients to specialists and ensure that they are working with trustworthy and competent professionals.

Overall, referring clients to a specialist can provide benefits such as access to policies and providers not available elsewhere, help clients navigate complex options, and ensure that clients receive advice and recommendations aligned with their needs and circumstances. With proper vetting and ongoing communication, advisers can help their clients find the best possible cover and pricing for their life insurance needs.

For more information on referring your clients to The Insurance Surgery, head to the referral centre webpage or give us a call on: 0800 083 2829

Author: Richard Brough – Expert Protection Manager, The Insurance Surgery

Richard has been affiliated with the Insurance Surgery since 2017. Where he holds the position of Protection Manager, overseeing a team of 12 proficient advisers. With over 5 years of experience in his role, Richard has amassed a vast knowledge base. Particularly in the areas of specialised medical and hazardous occupation cases. Moreover, he is known for his unwavering commitment to honesty and integrity, always providing forthright responses to enquiries.