With a shortfall in the market of £1.35 trillion

[1] the Business Protection gap represents a huge, untapped opportunity for advisers. Rewards in this area have the potential to be significant too, with larger premiums and improved consistency rates.

A shortfall in the market due to a shortfall in knowledge?

So why are advisers reluctant to approach the subject of Business Protection with their clients? Undoubtedly, they’ll have a ready supply of contacts within small businesses with whom they can discuss the possibility of a business protection solution.

A plausible reason for this Business Protection gap could be a lack of knowledge on the side of those selling these solutions in the market. Advisers may avoid pitching business protection to their clients through fear of talking through a topic they’re not entirely comfortable or confident on.

The conversation to have

So, let’s strip it back to the basics? Let’s encourage advisers to stop worrying about Trusts, Options Agreements or Anderson Guidelines and get them to switch their focus to what is important to the business owner. Typically, individuals run their own business for a variety of reasons that are personal to them –

  • The desire for greater flexibility
  • For a larger disposable income
  • Inheritance for their children
  • To build up the value of the business to be sold on
  • Retire at a younger age

 

The key to starting a business protection conversation is getting the client to open up about their reasons behind starting up their business, and discovering what is most important to them. This in turn will lead on nicely into a conversation about protection; justifying why they’d want to protect their most precious assets.

Throughout the conversation, ensure you relate back to the human element; their goals and ambitions. Whether it be a conversation around the impact of losing of a key person within the business on their cashflow, or the potential impact of losing one of their owners on the shares, ensure you are always referring back to what is important to them.

To find out more, speak to your Business Consultant or visit https://adviser.vitality.co.uk/life-insurance/business/relevant-life-cover/

[1] Legal and General, The Business Protection Gap, 2013