Financial advisers were implementing a ‘one-size-fits-all' approach to servicing clients, which meant they were potentially missing an opportunity to provide services that matters most to clients, AIA Australia said.
The life insurance specialist commissioned the Beddoes Institute to compile a white paper titled ‘The Advice Challenge', which said advisers had to fulfil the needs of each client segment if client loyalty is to increase significantly.
The research showed insurance clients could be divided into three groups: value seekers (59 per cent), personalised advice seekers (27 per cent), and purists (14 per cent).
Value seekers, which were the highest group, sought significant value for money (17 per cent), with 38 per cent reporting they did not get this from their adviser. They also sought quality communications (13 per cent), with 79 per cent reporting satisfaction.
Advisers must provide value for money for the value seekers if they are to increase loyalty, client referrals and revenue for their business, as there is a strong correlation between meeting client needs and revenue gains, the study showed.
Those wanting personalised advice wanted tailored insurance advice (31 per cent), with 91 per cent saying they received this from advisers, and claims management assurance (nine per cent), with 56 per cent of the segment saying they received this from advisers.
Purists wanted tailored insurance advice (44 per cent), and ‘ethical and independent advice (23 per cent).
Three quarters of the 450 current advice clients surveyed said they wanted to reduce their life premiums by partaking in health and wellness programs.
"Overall, the results indicate that advisers appear to be managing all clients uniformly and not addressing the specific needs of each client segment," AIA Australia chief retail insurance office, Pina Sciarrone said.
"By taking this approach, advisers are expending resources to delivering services that are not as valued by clients and missing an opportunity to focus on what matters most."