What’s the most important factor in the insurance sales mix of price, product and personal relationships? Even when you know the answer, there’s still some thinking to be done.

I work for a life insurer. And, over many years, I’ve learnt the importance of the relationship between a client and their financial advisor. It’s very clear that, in the sales mix of price, product, and personal affiliation, it’s the last of these three Ps that consistently wins out.

It’s perhaps no surprise that people prefer to buy long-term insurance from other people. This is an intangible product that only reveals itself when a claim is eventually made. So corporations and call centres simply aren’t trusted as much as a face-to-face contact is.

While the public has become better informed about our industry, the number and variety of products in the market today remains bewildering. It takes a specialist to understand the complexities of, for example, disability income and critical illness cover. A well-informed advisor is best placed to match buyer with benefits, and talk them through the key issues. Similarly, they’re the ones to help the client with the underwriting process, and avoid non-disclosure issues that may affect a pay-out.

When it comes to building a working relationship, ‘there’s no such thing as overcommunicating’

As Forbes magazine rightly put it in an April 2013 article, when it comes to building a working relationship, ‘there’s no such thing as overcommunicating’. That’s how you best determine a client’s needs – and that’s potentially the biggest factor in a successful sale. Product and price come later.

In fact, price should never be the most important factor. Securing sufficient cover is the first priority. Current and future affordability must be taken into account, of course, with any loading variables carefully explained. But a client must know that, ultimately, they’re getting what they pay for. Note that predictable premiums are as important as affordable ones – they ensure sustainable business for the insurer, too.

When tying the knot – as with signing up for long-term insurance – it’s usually best to get to know your partner first.