Planners urged to focus on client education
Advisers have to work with their clients to make sure they understand their insurance policies, according to Colonial First State general manager of advice Marianne Perkovic.
Speaking at the Financial Services Council annual conference, Perkovic said that moving to a customer understanding model throughout the advice process means that an adviser has to make sure that clients clearly understand the policies they are getting and the implications of those policies.
“Most complaints around giving advice on insurance concern policy terms that the client didn’t understand,” Perkovic said.
It would also help solve the underinsurance problem, she said.
Advisers will have to educate their clients if they hope to grow the industry, Perkovic said.
“We need to grow this industry, and how we can do that is to work in education and information, and helping the industry move to a customer understanding model, providing simpler products, and educating clients on how they need to protect their wealth,” Perkovic said.
Advisers also needed to work on executing an insurance process properly, she added.
Advisers should consider leveraging off platforms for their insurance products for clients, Perkovic said.
Pressuring platforms to include multiple insurance providers would help provide more choice for clients, she said.
Recommended for you
The popularity of ETFs, which are approaching $200 billion in Australia, is a potential threat to the advice landscape if consumers opt to invest directly, according to this senior partner.
A former AMP financial adviser has urged advisers in the BOLR class action against AMP to object to the “unfair and unreasonable” $100 million settlement sum as the objection deadline approaches on 22 May.
Two Victoria-based financial advice practices have merged and rebranded as Forbes Fava Saville Financial Planning, as the firm realises the benefits of added scale.
The Financial Services and Credit Panel has made its latest ruling over a case involving an incorrect Statement of Advice.