Aegon highlights business protection opportunities for advisers

Administrator business man financial inspector and secretary making report calculating balance. Internal Revenue Service checking document. Audit concept
  • Advisers cite business focus as top challenge to selling business protection*
  • New business protection policies only represented 1% of new individual policy sales reported in 2018**
  • Aegon launches a guide to business protection to help advisers maximise business protection opportunities

Business protection just “wasn’t a business focus” for 60% of advisers responding to a 2019 survey*.

And according to Swiss Re, more than two million total new individual policy sales were reported in 2018 but new business protection policies represented just 1% of them**.

In terms of client interest, 70% of respondents said clients believed they would create a Plan B should the worst happen, while 66% said clients didn’t see the need and 64% said clients weren’t interested enough.*

But with 5.9 million*** businesses in the UK, Aegon is encouraging advisers to consider throwing business protection into the mix and making it a focus for their business strategy in 2020.

Stephen Crosbie, Protection Director at Aegon UK, said:

“Whether you are a pensions adviser, a private client adviser or an adviser with links to solicitors and accountants, with around 5.9 million businesses in the UK, it’s unlikely that you would not have come across a client who could benefit from business protection.

“And advisers who aren’t selling business protection are missing out on a potential income stream.

“Business owners invest more than just money in their businesses, they often involve a lot of blood, sweat, tears and emotion. For many, their businesses are an integral part of their lives, central to their day to day life. So it makes sense that the business should be given the same financial protection as a member of the family or asset, if not more.

“Make business protection your business in 2020.”

Aegon is here to help advisers

Aegon has launched a guide to help advisers grow by venturing into the business protection market.

The guide is aimed at a wide range of advisers so they can identify and maximise business protection opportunities.

What’s in the guide

The new guide provides information and support on specific business types including:

  • guidance on setting up business protection arrangements;
  • the tax and trust implications surrounding the different arrangements available;
  • how to identify potential clients;
  • how to develop professional connections;
  • employee benefits for small and medium sized companies, and
  • possible business protection solutions.

Crosbie continued:

“Business protection doesn’t need to be complicated. Even if you don’t have any links into this market, our guide can help you develop opportunities, as well as learn more about business protection and how to advise on it.

“Talking to clients about business protection is a key part of guarding their most prized possessions – one of which might be their business.”

The new Guide to business protection forms part of Aegon’s established online Business protection toolkit and is available via the Aegon insight hub for advisers, Advice Makes Sense.

 

References

*High Net Worth and Business Protection adviser research, Cicero, March 2019

**Swiss Re Term Health Watch 2019 pgs 4 and 30 (1% is calculated: (21,477/2m) *100= 1.07%)

***Department for Business, Energy & Industrial Strategy – Business population estimates for the UK and regions 2019

 

Further information

 

Stephanie Melrose

PR Manager

Aegon UK

stephanie.melrose@aegon.co.uk

Tel: 0131 549 6743

Mob: 07740897621

 

Notes to Editors

  • In the UK, Aegon offers retirement, workplace savings and protection solutions to over three million customers. Aegon employs around 2000 people in the UK and together with a further 800 people employed by Atos, we serve the needs of our customers. More information: aegon.co.uk
  • As an international life insurance, pensions and asset management group based in The Hague, Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon companies employ approximately 26,000 people and have millions of customers across the globe. Further information: aegon.com

Figures correct as of November 2019