Educating consumers on advisers’ insurance help

ClearView has released a booklet of customer reviews to highlight the benefits of life insurance advice and urge the industry to share their success stories, amidst Treasury’s Quality of Advice Review.

Featuring testimonials from ClearView customers, ‘Claims at ClearView: What our customers say about us’, showcased the value that financial advisers could add, particularly at claim time.

According to Simon Swanson, ClearView managing director, it was up to the financial services community to educate consumers, policy makers and regulators about the value of professional advice and the difference it makes in peoples’ lives.

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“Educating the community about the value of life insurance is a core part of ClearView’s customer engagement strategy. The industry has historically struggled to clearly articulate the tangible value it adds but it’s on full display during claim time,” he said.

“That looks like helping a client in desperate need complete and lodge a claim application, arrange doctors’ appointments, liaise with insurers and, ultimately, telling them that their claim has been accepted.”

Using the power of storytelling, nine ClearView customers shared their experience getting life insurance and, ultimately, claiming on their policy, after suffering an unexpected accident, injury or illness. Of the nine customers, seven had a claim paid in the last 24 months including five in the past year.

The booklet included customer reviews from Suzanne, who lost her husband of 50 years, Laurence, to pancreatic cancer in 2021; Greg who had terminal cancer and had been given roughly five years to live; and Stuart who was recently diagnosed with Lewy Body Disease.

“Life insurance advice and the impact of the Life Insurance Framework are key focus areas of the Quality of Advice Review, which creates a unique opportunity for life insurers and financial advisers to get their clients to advocate for them,” Swanson said.

“Customer reviews are extremely powerful and if we don’t talk about our successes then no one else will.”

The release followed  ClearView’s submission to the Quality of Advice Review, which petitioned for no further adverse changes to life insurance commission caps.

Last month TAL that advisers needed to improve their emotional intelligence skills to help consumers who were going through a life insurance claim.

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It’s also up to the 8 different regulators to reduce mass BS over regulation, mass over lapping compliance confusion and mass Adviser killing regulators.
Unfortunately the Regulators have zero interest in listening to Real Advisers & Real Clients.

Mr Swanson, for more than 100 years many good advisers have demonstrated the value of life insurance and most cases the results of that advice have been the cornerstone of families and businesses surviving as a result of death or injury.
But those stories relate to legacy contracts that offered guaranteed reasonable terms at an affordable premium.
Now you want the industry to offer inferior contracts that have almost no product differentiation with no certainty of cost to the client.
You want advisers to accept that proposition to clients knowing that here is a 2 year clawback on commission and also knowing that they have to arrange insurance for twice as many clients to what the used to earn, on one.

If the way forward is to charge a fee for service then in a simple example of discounting a $2000 premium by 30.0% (discount for Nil commission) thus allowing the life company to charge initial premium of $1400 but to cover an advisers time @ $150 per hour and in most cases from initial interview to acceptance could easily involve 9 hours work, resulting in the adviser charging the client $1,350 for the advice.
I'm not sure since the total initial cost to the client is now $2,750 when in the past with commission they would have paid $2,000, how you sell that as a value proposition.

I've lost my appetite for life insurance completely. The quality of policies has reduced, the premiums have soared. Underwriting is getting harder. Claims are impossible. The work involved has gone to ridiculous extremes thanks to overzealous compliance staff, who are taking the FASEA Code of Ethics literally and wanting more and more to be added to SOA's. Commissions have reduced, and I have to sweat on a 2 year clawback.

Meanwhile, there are loads of boomers looking for retirement advice, who are willing to pay a good fee for advice. In most cases I will earn far more for this type of advice, with less risk, less work and greater certainty.

Must admit, there is a bit of schadenfreude about this as the majority of the problems plaguing the life insurance sector were created or heavily influenced by the misleading, perverse, 'white-anting' attacks on us by life insurance executives. They are now reaping what they sowed.

I'm with you Giggity. Insurance advice is just too much hard work for too little reward and too much risk. Rogue regulators ASIC and AFCA will persecute advisers for recommending too much insurance if the client doesn't claim, and persecute advisers for recommending too little insurance if the client gets ill or dies. In a regulatory environment driven by bias and vengeance, giving insurance advice is setting yourself up to be slaughtered.

All the comments above I 100% agree with and endorse. Thank you to the commentators as it solidifies to me I'm not alone in thinking all those thoughts. I'm having a hard time of it, within myself, lately and am edified to know I'm not alone. Sadly, I'm feeling that:
1) the ridiculous compliance has had a large part in killing our industry, especially risk advice.

2) I also have no appetite (like Giggity comments above) due to having to find twice as many clients to get not even the same risk remuneration as a few years back.

3) any enthusiasm I had once (a lot, once) has evaporated due to the reduced commissions, compliance red tape burden and politicians and special interest groups killing our industry. I have zero enthusiasm for 'educating' or 'demonstrating' the value of anything to new clients now. Just minding my old clients 'til I can figure out how to exit this nightmare of an industry now after 35 years. Good luck all . . .

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