Trust in times of uncertainty

Corporate conferences are certainly proving to be more thrifty and conservative than in previous years given the current economic situation.

AXA's was no different, when it invited all of its global CEOs together a couple of weeks ago to debate the current market environment.

For me it was reassuring to see that our balance sheet has held up well, which I think is a blessing for the future and an endorsement of our financial stability.

Much of the talk was of the current economic situation with little in the way of reliable predictions for the future - economists can't even agree on why we've arrived where we have, never mind agreeing on the future.

For what it's worth, our chief economist believes there are signs of a recovery and we might see a V shaped graph - but it was just one view. And even if it is a V, previous recessions have seen house price falls and rising unemployment long after the low point and GDP decline.

Much of our debate was around the importance of engaging with the customer, and rebuilding trust in what we as an industry have to offer - financial protection during life's many ups and downs. This has been a recurring theme for us, indeed trust is a huge issue and one I'm sure we'll return to every year at this conference to remind us of its importance.

As MD of AXA's protection business in the UK, I really empathise with the trust theme. Protection products are so vital for so many individuals, families and small businesses providing vital financial support at times of deep distress.

When it comes to that moment of claim it is so important for providers to 'be there', ready to pay out as quickly as possible, which also means clients place huge trust in their advisers to advise them properly when they commit to a policy.

Equally clients have to be trusted to answer those underwriting questions correctly because it's easy to be glib when filling in the forms. I'm sure many advisers have experience of clients needing them to disappear because their favourite programme is about to come on or some such reason, but they must resist - what is the saying "act in haste and repent at your leisure".

A little extra time invested up front pays huge dividends for the individuals, their families and the industry at large.

Graham Harvey is managing director at AXA protection.

scott.sinclair@incisivemedia.com