Legal & General has urged financial advisers not to underestimate the importance of customer relationship management when it comes to writing protection business.
The insurer said £30.6m was saved last year by advisers that effectively put the customer at the centre of their business.
To encourage effective customer relationship management, Legal & General’s 2014 Business Quality Awards (BQAs) will be held on 12 February at One Coleman Street, London, EC2R 5AA between 11am – 3pm.
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The BQAs form part of the insurer’s Distribution Quality Management programme which provides industry expertise to help advisers improve client retention.
Ahead of the awards, Legal & General outlined five tips based on the experiences of 2014 winners to help intermediaries develop better customer management strategies in 2015.
For example, Andrew Clark Head of Commercial Management & Distribution Quality Legal & General, said: "Investing in effective Early Warning Systems (EWS) allowed most of the outstanding firms nominated for BQA’s 2014 to identify when customers were at risk of losing valuable life insurance due to their policy lapsing."
Clark added: "In recent years protection products, new business models and adviser client interaction have become more commoditised which has led to a more transactional type of relationship. By making a business too transactional some advisers run the risk of putting product sales ahead of people’s needs.
"There is a need to refocus on the idea that advisers sell time and expertise and not just products. To embed value in a business you need to invest time and effort with your customers. If you do that well enough the net result will be a better customer experience a stronger relationship, a stronger brand and a move away from price-driven interactions"
