Protect Line Wins L&G Business Quality Award 2021

Researched & written by Keely M.

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Read time:

2–3 minutes

Published on:

24 Jun 21

Topic:

Awards, Company announcements

Protect Line is proud and delighted to announce that it has won the “Best Customer Retention Performance” category in Legal and General’s Business Quality Awards 2021.

The Business Quality Awards shines the spotlight on firms and advisers who are making a real difference to their customers through the quality and consistency of their business practices and that have shown a commitment to putting their customers first.

Best Customer Retention Performance Award:

Awarded to businesses who’ve had a significant improvement in their retention performance (based on lower ‘cancel from outset’ and ‘lapses’ versus the same period last year).

What is Customer Retention within Life Insurance?

Customer retention is the ability of a company to retain its customers over a specified period. With most insurances, such as car and house insurance, or even car breakdown cover, your policy usually only lasts for one year and you’ll need to renew it annually or lose protection. Life Insurance is different in that the policy term is often for multiple years so doesn’t need to be renewed annually. However, if payments are missed at anytime during the term then the policy may lapse. There is often a slight grace period when a direct debit fails, which brokers like Protect Line use to actively reach out to customers to investigate and correct any mistakes, answer any questions, and ultimately ensure that families remain financially protected.

Why is Customer Retention important?

When a life insurance policy is taken out the customer locks in their monthly premium for the duration of the term. The price is based on age, health and lifestyle and is often cheaper when you’re young and healthy. If a policy is cancelled, or mistakenly lapses due to a failed direct debit, the customer would need to start a new policy which could be quoted at a significantly higher price than they previously paid. It is therefore in the customer’s best interest to keep their policy going, should they still want the financial protection for their family.

Who is most likely to cancel life insurance?

Leading life insurance broker Protect Line has studied the cancellation data of 10,822 of its customers. The statistics give an interesting insight into exactly who is most likely to cancel their life insurance before the end of the term and why this may have happened.

Whilst there is no significant difference between males and females, age does seem to have an impact. The cost of the premium also seems to play a big factor, with the more expensive a policy the more likely someone is to cancel. Of Protect Line’s customers who paid less than £10 per month, 19% cancel early. In comparison, those paying over £50 per month had a 36% likeliness to cancel.