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.
AUTHOR
Benjamin Levy
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
The FAAA has suggested looking offshore for overseas financial advisers to ease the adviser shortage, but are employers willing to take on the burden of workplace visas?
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
