Financial advisers and life insurers may need to consider working more closely together in managing expectations of policy-holders with new research finding many already expect a joint effort in applying for a policy and when making a claim.
The research, conducted by the Beddoes Institute, found that while advisers saw themselves as solely responsible for a number of roles, policy holders and claimants believed they were also working with insurers in many cases for specific outcomes.
While most advisers (89%) and a majority of policy-holders (57%) believed advisers were solely responsible for providing policy advice and recommendations a further 30% of the latter believed advisers and insurers were jointly responsible for this task.
Once a policy was in-force advisers and policy-holders both considered keeping a client informed was a task for an adviser and life insurer with 65% of advisers and 48% of policy-holders regarding this as a joint task compared with only 25% of advisers and 21% of policy-holders who regarded it solely as the role of the adviser.
“…advisers also appear open to working collaboratively with the insurers in managing the customer on an ongoing basis in all areas…”
More than half of advisers surveyed in the research stated they had a joint role with insurers in the area of claims with 55% stating that managing the claims application was a shared role compared with 36% of advisers who believed it was solely their role.
Beddoes Institute Director, Dr Rebecca Sheils said the policy-holder engagement is made difficult due to the multidimensional relationships between policyholders, claimants, life companies and advisers, particularly when the roles of each party are not well defined.
“Insurance companies clearly have a role with the end-client when a policy is being set up,” Sheils said, adding. “Policyholders increasingly look to their insurer to play a greater role in managing them as a customer on an ongoing basis.”
“Encouragingly, advisers also appear open to working collaboratively with the insurers in managing the customer on an ongoing basis in all areas, except for providing ongoing policy advice and recommendations which they see as their main role.”
Sheils said the research indicates advisers and insurers still need to clarify their respective roles in keeping the policyholder informed, coordinating third parties and managing the policy application to avoid confusion and disappointment.
Further details about the research are available in the May RiskInfo eMagazine in the article: Managing Client Expectations: A Job for Adviser or Insurers?
The adviser should always have their “finger on the pulse ” your clients expect it and deserve it They pay an annual fee cal it a review fee or whatever but unless you talk with them and assist them through the claim period they will eventually go somewhere they can be assisted
It’s a troubling time and it’s not an easy rxperience for many of them particularly with providing financials and doctors reports
Help them and they are yours for life and will tell others how you have helped
Not everything we do needs to come with a price tag
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