Risk and advisers align
The integration of risk insurance into a financial planning business is a necessary future step for the planning industry to take, according to Ord Minnett personal risk manager Simon Croxton.
The integration of risk insurance into a financial planning business is a necessary future step for the planning industry to take, according to Ord Minnett personal risk manager Simon Croxton.
Speaking at the Zurich Risk Symposium in Sydney, Croxton said there were synergies between risk insurance and financial planning, and the two “go hand in hand”.
However, the risk specialist pointed out that risk and financial planning are different areas and need to be approached by individuals in this way. Croxton says it will be necessary to “go with one or the other and specialise”.
Treating risk insurance as separate to financial planning is important for both the clients’ understanding and practicing safe risk, he says, and incorporating the two also means educating planners.
As the financial planning industry matures and changes revenue sources, planners and risk insurance writers need to recognise that they can offer their clients a better service by working side by side.
According to Croxton a “back to basic method will achieve a win-win situation for all.”
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