A recent study by specialist healthcare insurer National Friendly has found that word of mouth is proving most effective in securing new PMI business for IFAs.
The consumer survey conducted by the health insurer found that 55% of people who are looking at buying PMI, choose their IFA based on the recommendations of a friend, colleague or legal professional. In comparison, only 8% of people select an IFA after seeing an advertisement, and just 2% of people are influenced by a marketing promotion.
In support of these findings, 78% of those surveyed would prefer to receive guidance from an IFA in person, as opposed to over the phone or by post or email. The statistics show that, when purchasing PMI, customers are looking for trustworthy advice from a person who they can speak to directly and discuss their PMI needs with.
Head of commercial distribution at National Friendly, Ian Talbot, said: “We were keen to find out exactly what the deciding factors are for customers when they look to buy PMI through an IFA. The results of the research reiterate the fact that PMI is very much an emotive purchase and that new customers prefer to speak to a trustworthy adviser, in person, when discussing their healthcare cover options.
“IFAs should take comfort in the fact that maintaining excellent customer satisfaction standards is still an effective way of winning new business and that their existing customer base is the key to bringing new business in.”