- Yes (75%)
- No (13%)
- Not sure (12%)
Our latest poll delivers a solid affirmation that advisers believe their less-experienced peers are reluctant to ‘sell’ life insurance solutions.
As we go to print, 75% of our poll respondents agree the new generation of risk-focused advisers has a problem with using selling techniques. 13% disagree with this contention, while 12% remain in the fence.
Do you support this majority point of view?
The inspiration for this poll comes from comments made by Synchron’s Don Trapnell, who asserts that a hesitancy to be seen to be ‘selling’ risk advice solutions is contributing to the industry’s sustainability woes (see: ‘Fear of Selling” Leading to Lapses).
Comments from advisers so far have largely supported Mr Trapnell’s position:
“It is ironic that the established professions are increasingly recognising the importance of being able to engage with the client … whereas for financial planning, as we try to emulate those professions, “sales” has become a pejorative term.”
“Our new generation of advisers fear the consequences of not ticking their compliance box every bit as much as they fear actually selling.”
The stigma attached to the word “sale” in our industry is to blame
“The stigma attached to the word “sale” in our industry is to blame. Young advisers need to remember their professional duty of care and put the client first – if they NEED to hear something then you MUST tell them.”
Does this last comment then imply that it is the responsibility of advisers, in a post-FoFA world, to ‘sell’ to their clients what is in their best interests, if this is what it takes for the adviser to discharge his/her statutory responsibilities?
To an extent, this poll is a debate about how the term ‘selling’ is defined. So, as you consider your response, look at the question from the perspective of one of the many new generation of advisers. And if you are one of the many new generation of advisers, consider the question from the experienced adviser view-point. But either way, tell us what you think…
Of course new advisors are uncomfortable in selling risk products, for one simple reason, they are not being taught how to sell!
Education today is all based on ramming compliance, regulations and to a lesser extent product knowledge down the throats of advisors which is of little or no use if they are not being taught what to say “after they say hello”,how to obtain relevant information from potential clients, how to present and close a sale!
Dealer groups and insurance companies alike have a lot to answer for in this regard and what is more from my actual experience, they are very reluctant to do anything about it!
I recently did a mail out to some 47 groups and institutions on this exact issue and I did not receive the courteousy of even so much as one telephone call in acknowledgement.
Disappointing, Peter. Yes, new advisers don’t have access to quality sales training such as was provided during the tied-agent arrangement. Even video training is not the same as class room training used to be.
Much has changed since those days, of course, including the savvy of prospects – they know when manipulative tactics are used on them. There’s clearly an opening for a smart cookie to provide this to life offices and dealer groups.
Firstly we must accept that we (along with most other professions) are salespeople. Anyone who deals with clients, patients or customers is selling a product or service. We sell advice. We ascertain our clients’ needs and provide a solution. Many clients procrastinate and need polite but persistent prodding and cajoling, particularly in the insurance space. So what is “selling”? It’s simply closing sales (of advice in our profession) and products that fulfil needs in many others. It requires persistence, discipline and honesty. Unfortunately a multi billion dollar industry (mainly in the US) based on the “soft selling” approach has softened people up to such an extent that many young advisers, most of whom are technically competent, cannot get new clients and, when they are given them, cannot get the new business over the line. I’m so grateful that I (along with Don Trapnell and others) went through the era when we had sales training as it has prepared us magnificently for the modern age of advice, both as advisers and mentors.
Ian Wickens B.Com (Econs), CFP, Dip LI, Dip FP, Dip AII.
What a shock that a poll to advisers with an average age over 55 would say that the young don’t know something.
I’ve met plenty of young gun advisers who know exactly how to sell and do it well.
Thankfully they also know what they are doing since they are more likely to be properly educated.
If anything, younger advisers will be driving up churn (re Don’s point on sustainability) because they will be looking at the old policies written 10+ years ago and oh I don’t know.. servicing the client!
I have one sitting on my desk now with a trauma policy and IP written in 1999.
Is it in my clients best interest to leave that where it is? No partial trauma payments, poor definitions for heart attack and cancer, 1/2 the ancillary payments you see to day, 25% impairment required for all degenerative conditions and that’s just the trauma.
It comes back to the insurers not the advisers. You can’t close books, jack up pricing and then hope that the lazy adviser will just leave them there. The new generation will actually want to sit down and review every client, every year and it will cost the insurers that don’t keep their policies up to date and leave clients behind.
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