T&D pilot to close protection gap

With the protection gap estimated to be around £2.3 trillion, AXA is hoping to use this test programme to determine the impact that protection-led training can have amongst key partners.

Teams from a pilot group of seven networks will undergo module-based protection training over the next two months to increase the advisers’ competence and understanding of the importance of protection discussions, particularly when a mortgage is taken out.

Modules will cover topics including ways advisers can boost their businesses by offering protection products, technical product information, e-commerce, underwriting including why certain questions are asked by insurers, the ABI changes to critical illness definitions brought in this year and complying with Treating Customers Fairly (TCF) by offering protection products.

Jamie McIver, director of protection sales at AXA, said: “We’ve deliberately chosen to work with key partners with a range of different adviser models, including face-to-face, telephone, bank/building society, single tie and whole of market. This should give us a true picture of the impact this training can have on their business and inform our future plans.

“We’ll be measuring whether the training leads to an upshift in the participants’ activity on protection products generally, not just on AXA products, and also asking for honest feedback from all participants on whether the training was helpful for them and improved their confidence in upselling protection.

“There is currently a very bad conversion rate between advisers selling mortgages and selling the accompanying protection, although under TCF there is the need to ensure that clients are adequately covered. The aim of this pilot project is to find out whether this type of training can help close the protection gap and help build stronger relationships between providers and advisers.”

AXA will collate the results of the pilot in early 2008, and if the project proves successful it could be offered to more advisers in the future.