The Intermediary – July 2026 - Flipbook - Page 70
P RO T E C T I O N
Opinion
Harnessing the
right tools to
build confidence
W
hen it comes
to general
insurance (GI),
advisers are
under constant
pressure to
balance price and level of cover for
clients who are navigating what can
feel like an unfamiliar and sometimes
confusing market.
At the same time, we know that
opportunities don’t always land. Half
of advisers in our Adviser Survey last
year – which was conducted with
460 advisers in June 2025 – said they
sometimes miss opportunities to sell.
Interestingly, one of the simplest
tools to help close this gap may already
exist, it just isn’t always being used to
its full potential: Defaqto Star Ratings.
An underutilised tool
New research from Defaqto, which
is based on responses from 3,171
consumers in July 2025, suggests
that Star Ratings remain one of
the strongest drivers of consumer
confidence and conversion. A huge
72% of consumers said they’d be more
likely to buy a product with a Star
Rating even if it costs more.
The same research, however,
found that visibility of Star Ratings in
advised conversations is much lower
than other channels. Only 8% of
consumers have had financial advisers
use Star Ratings with them despite
the proven consumer confidence
they drive, compared to 30% who
said they see Star Ratings on price
comparison websites.
Advisers who make Star Ratings
central to their advice journey have
an opportunity to build greater
trust and differentiate their service,
particularly for clients who may be
less experienced. This method offers
independent validation of products
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The Intermediary | July 2026
and translates complex features into
a format that’s easier to understand
and process.
Plus, if clients decide to think
about it or do some further research
of their own at home, having a 5-Star
Rating is likely to have lasting impact
in their mind. While they might not
remember all the ins and outs of the
product off the top of their head, they
are likely to remember that.
Meeting new expectations
Defaqto’s research also highlights
some interesting generational trends.
Reassurance from Star Ratings is
strongest among Millennials (83%)
and Gen Z (79%) – groups more likely
to be engaging with general insurance
(GI) products for the first time. This
aligns with our own data, with 47%
of advisers saying first-time buyers
(who most likely fall within these age
brackets) are the clients they deal with
most frequently.
Naturally, these clients may be less
familiar with insurance and therefore
might be more likely to look for things
that help them feel confident in their
decisions. So, referencing Star Ratings
in conversations with them is a small
tweak, but one that could significantly
impact how the conversation goes.
Beyond price-led discussion
One of the ongoing challenges in GI
advice is the perception that price is
the primary driver. Yet, the data shows
us a more nuanced picture, with seven
in 10 consumers being more likely to
buy a product with a Star Rating even
if it costs more. This is a reassuring
takeaway for those advisers who
are concerned about their ability to
compete on price.
It also tallies with findings from
our own research that consumers are
willing to pay more for products if
NASAR HUSSAIN
is associate director of
intermediated household
at Paymentshield
Advisers who make
their Star Ratings central
to their advice journey
have an opportunity to
build greater trust”
they give them peace of mind that they
have the right cover for their needs.
In consumer research we conducted
in September last year with 2,067 UK
adults, we found that over half (56%)
of respondents agreed with this.
For advisers, this creates an
opportunity to reframe conversations
away from cost alone and towards
value and suitability.
Reducing the burden
Finally, the Defaqto research offers
insights into the effort consumers
expend during the decision-making
process. It shows that nearly half of
consumers now research ‘extensively’
when looking for insurance products.
While this reflects a more engaged
customer, it could end up being a pain
point and time burden for a client.
Again, this can and should be taken
as a real opportunity for advisers
to showcase the value they add at
a timely stage in the home buying
journey. By speaking to customers
early, talking through their needs and
being able to offer them protection
through a highly rated product,
they can do the work for consumers
and negate the need for this
time investment. ●
