For financial adviser use only. Not approved for use with customers. Reaching out to renters How to write effective letters and emails to renters about the need for protection
With renting on the rise, a new protection gap is growing. Together, let s reach out to renters. We all know that the way we live today has changed from years ago. Statistics show that fewer people are getting married, for instance, and more than ever - 37%, in fact- are renting. But what might come as a surprise is that a massive 81% of these renters have no form of protection insurance, leaving them and their loved ones exposed if anything bad were to happen. At Aviva, we think it s time to tackle this growing protection gap. So we ve put together this short guide to help you write effective letters and emails to clients and prospects about the importance of protection. Did you know? This is how few renters currently have protection insurance: 3% 2% 14% Critical illness Income protection Life insurance Sources: Source for statistics: FCA Financial Lives report, 2017 English Housing Survey, 2016-17
Identifying who to contact The more tailored your letters and emails are, the more likely they are to be successful - as the recipient will be able to relate to what you re saying and see how protection is relevant to them. If you have a database of clients and prospects, start by extracting those who live in rented accommodation (if you have this information). Then you could try dividing them into the following sub-groups, and adapting your message to each one accordingly. Which renters most need your support? Young singles - likely to be 25-35-years-old, young singles rent for a number of reasons. It may be because they like the flexibility... or because they re saving for a deposit. It could be worth prompting them to consider how long they d last on their savings if they couldn t work. Couples - tend to be split between those who rent for the freedom it allows and those who are saving for a deposit. Whether they re married or not, income protection, critical illness and life insurance could all be worth considering... especially if children are on the horizon. Families a growing number of families are now renting their homes rather than buying them. Since they have children, they may be open to a full range of protection products. It s just that, because they don t have a mortgage, they haven t been prompted to consider it by a broker. Older singles - this group includes divorcees, 51% of whom turn to the rental market after separating 1 It s likely they ll have depleted savings at the time you re getting in touch, so it s worth asking how they d keep a roof over their head if they became unable to work. Get more help with targeting For more help identifying likely prospects, take a look at our new customer targeting guide. It s available to download now at aviva-for-advisers.co.uk/renters 1 Source: Aviva Family Finances Report, January 2018
Tackling the topics nobody likes to consider Research from the FCA shows that just 19% of renters have any form of protection insurance. And sometimes the reason they don t have cover is because they simply don t like to think about bad things happening. So here are a few ideas that could help you discuss protection in your communications without scaring your clients. Say it with statistics Using facts and figures is a good way of showing your clients that illness, death and injury are actually quite common. It may help them see that these scenarios happen more often then they might think, but also reassure them that they re not alone if something does happen. It s best to only use statistics which are up to date and from a reputable source. And mention where they came from. Here are some examples you could use from our March 2017 Protecting our Families report: 31% UK adults have experienced leave from work due to unexpected ill health, a cancer diagnosis or a death in the family. 12.3 million people have seen their finances suffer as a consequence, leaving them with nearly 50% more debt and 40% less savings. Even if they spent the bare minimum needed to get by, one in three families couldn t get through a month unsupported without their main income. Use social proof By nature, most people like to follow a crowd. So instead of talking about how many people don t have protection, focus on the fact that over 2.7 million renters actually do. Ask questions Bluntly telling someone about the risks of not being covered can actually put them off. Instead, ask them some questions to get them thinking about their own circumstances. Here are some examples you could try: How would you continue paying your rent if you were too ill to work? What would be the first thing you d have to cut back on if your main income stopped? How often do you find yourself worrying about what would happen to your family if something happened to you or your partner? Overcome objections It s normal for clients to have objections or concerns, big or small. So it s worth preempting some of the more common ones in your letter or email: I d dip into my savings would your client be happy to spend the money they d worked hard to save, especially if they had it earmarked for something? Policies never pay out why not tell your clients how many successful payouts you ve handled recently, or ask a happy client to write a testimonial you could use? It s too expensive as you ll know, the reality is that policies start from as little as 5 a month, and there are things you can do to keep costs low. Source for statistics: FCA Financial Lives report, 2017
Structuring your letter or email Effective letters and emails get to the point and use simple, everyday language. For easy reading, it s often a good idea to break up your message into three clear sections, divided by subheadings: 1) An introduction saying why you re contacting the client 2) An explanation of your main message 3) Next steps - what you d like your client to do and why, including how to contact you. Here s an example of a letter to a client with a family, using some of the techniques mentioned in this guide. Resources to help you sell protection At aviva-for-advisers.co.uk/renters you ll find a selection of resources to help you sell protection to clients. Including infographics and a short on line video. Try attaching them to your emails or using them to kick off the conversation in client meetings. Address your client by name Introduce yourself and why you re getting in touch Pose questions Use statistics to make your point (remember to say where it came from at the end of the letter or email) Overcome objections Use subheads to break up chunks of text Give clear next steps Dear Mrs Smith, At ABC Advisers we ve helped many families put a plan in place for if they couldn t work, or if they or their partner died. Of course, nobody likes to think about these sorts of things happening, but it s important to make sure you and your loved ones have a financial safety net in place - just in case it does. How would your family cope if you lost your main income? Even if they spent the bare minimum needed to get by, one in three families couldn t get through a month unsupported without their main income. 1 That s why it s so important to think about what you d do if something happened to you or your partner. Perhaps your wider family might be able to support you for a couple of weeks - but what would happen if you developed a long-term condition? We re here to chat through your options To make a free, no-obligation appointment to find out more, call us on 01234 567 8910 (Mon-Fri, 9am-5pm). We ll ask a few questions about your circumstances, and it may be that a simple, affordable product like life, critical illness or income protection insurance is enough to give your family peace of mind. 1 Source: Protecting our Families report, Aviva, 2017
For more support to help you reach out to renters, visit aviva-for-advisers.co.uk/renters or speak to your usual Aviva contact. Retirement Investments Insurance Health Aviva Life Services UK Limited, Registered Office; Aviva Wellington Row, York, YO90 1RW. Registered in England No. 2403746. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number 145452 PT15859 07/2018