| Journal: TWUK | Section: |
| Title: | Issue Date: 17/07/00 |
| Author: | Page Number: 54 |
| Copyright: Other |
Sales update by Jane Archer
Time to work on sales techniques
Agents have to expand basic knowledge
A HOLIDAY Which? survey into people’s buying habits has raised concerns about the public’s confidence in agents’ ability to sell travel insurance.More than a quarter of those surveyed said they were unlikely to buy insurance from a travel agent or tour operator again.
In some cases, clients were dissatisfied with the way claims were handled but many were also unhappy with agents’ selling techniques, such as the offer of free insurance and asking them to sign indemnity forms.
These forms – one of the selling tips offered by intermediaries (see box) – confirm that the client was offered and declined insurance, thereby removing any responsibility from the retailer if they then travel without cover and have an accident.
An NOP survey for American Express of 1,000 people indicated that up to 7m holidaymakers will travel without insurance this year.
Most intermediaries are satisfied with agents’ basic knowledge of travel insurance – described by the insurance ombudsman as the most complicated financial instrument a client will ever buy – but feel there is room for improvement.
Voyager director John Peters said: “Clients need to know what they are buying and agents are not always as aware as they should be.
“Activities are usually a problem. Agents must make sure they sell insurance that covers any activities the client may take part in.”
Euclidian Risk Management director Steve King added: “The problem is that travel insurance is very important so agents’ standards have to be high.
“However, I’m not sure that they always are. I think that puts the onus on us to make sure we are providing a product that will not cause clients to complain.”
Ketteridge general sales manager Doug Weston was concerned at a recent training session in London when none of the 22 agents had heard of the Association of British Insurers’ code of practice.
This requires agents to draw clients’ attention to aspects of the policy, such as the existence of policy excesses, conditions and exclusions, and pre-existing medical conditions.
“It makes me wonder what else agents are not aware of,” said Weston. “This is why training is vital. I believe the public does know if the agent is not confident selling them the product.”
The need for more training is a frequent cry from intermediaries who are all keen to help agents learn about the products they are selling but face a lack of interest from the trade.
Devitt divisional director and head of travel products Robert Smith said: “We often see a reluctance among agents to invest time in training.
“They have a good overview of the insurance product but their lack of knowledge shows if you ask a technical question.
“The Which? survey simply highlights the public perception that direct-sell brokers are able to offer a better service.”
Citybond sales director Iain Chalmers agreed.
“ABTA has picked up on the lack of knowledge among agents, but it is down to managers to make sure staff are aware of the terms and conditions of a policy,” he said.
ABC Holiday Extras insurance manager Shelley Sutton said the agents she works with know the policy through training sessions. Queries to the office are monitored and answered in a quarterly newsletter.
Travel Protection Group chief executive Stephen Howard said agents who are not interested in learning how to sell insurance properly will have to stop selling it when the General Insurance Standards Council becomes mandatory because insurers will refuse to work with them.
“ABI mystery shopper exercises show they sometimes exceed brokers in terms of the way they are doing their job and the advice given.”
Training: is vital to improve agents’ product knowledge
Clued up: agents must ensure they are providing a product that will not lead a client to complain