Wealth Health Needs Nurturing

By Alison Steed

WOMEN are being encouraged to approach their financial health in the same way as their physical health by insurers.

The Chartered Insurance Institute (CII) is suggesting that the industry should move away from the traditional ‘product’ driven approach, towards a system which is based on the outcomes of financial planning, akin to the WeightWatchers health plan.

Women are less confident about making financial decisions than men, according to the CII’s research, with half of us saying we feel this way, compared to just over a third of men.
Three quarters of women feel that simplicity is important to them when they are selecting a financial product, and two in five find the wide range of financial products makes it more difficult for them to choose.

Carole Nicholls, director of Nicholls Stevens Financial Services and author of the Thinkpiece, said: "The current systems of financial advice is product-driven, the key information being supplied in a booklet or report full of jargon for the individual to select the most suitable product. Attitudes to financial advisers vary between men and women with women holding financial advisers in lower regard. Specifically saying that they find advisers poor at communicating in clear and simple language without being patronising.
"The new model I am suggesting offers the individual a personalised financial plan to work to which should focus on the outcome as well as the investment - making the connection between the product and the result in real-life terms.
"One vital introduction to the new model includes the investor having a trusted mentor to work with to assist with any life or financial disruptions."
Women are more likely to have home contents insurance than men, at three quarters compared to seven in 10, and nearly a third of women have life assurance protection, compared to 29 per cent of men.
However, just a quarter of women have travel insurance, while more than a third of men take this policy out.
Ana Catalano, Manager Policy and Research at the CII, said: "The industry is missing a trick if it focuses on the product rather than the whole experience for the consumer - and also missing out on a big market in potential female clients. The ‘WeightWatchers' style financial health plan is simple, lifestyle specific - and not just for women. It offers a real opportunity for the professional adviser to add value to their services. In these difficult times, a return to fundamentals focusing on the consumer has real potential to help restore trust and confidence in the profession."