Hillross Risk Insurance Initiatives

In a renewed drive to address its clients’ wealth protection needs, dealer group Hillross Financial Services has identified three key areas as the subject of its focus:

1. Focus on the ‘living insurances’
2. Active protection planning
3. Business continuation

Hillross’s National Risk Development Manager, Patrick Dieter, explained to riskinfo that these three key areas of focus for the dealer stem from what it believes its advisers should know about their clients, how they should identify their needs and how then to find the right solution for them.

1. Living Insurances

Mr Dieter suggests that the life insurance industry may have lost sight of the purpose of the trauma policy: “At Hillross, we have taken trauma recommendation back to basics. The product was designed to assist a person financially should a medical catastrophe occur.  Our approach is to recommend a [trauma] lump sum to assist with the medical expenses.”

This approach is qualified by Mr Dieter, who adds, “… we do not attempt to clear all debts, [but] rather service the debt for the period of the trauma event.  Income Protection should be running, and if the individual was to become permanently incapacitated from the trauma event, they would probably qualify for TPD.  We let TPD clear all the debt.”

Hillross believes that from the client’s point of view, this approach is affordable and it allows for greater interaction between the insurance policies, leading to a more meaningful and affordable protection plan solution.

2. Active Protection Planning

Hillross’s ‘active protection planning’ philosophy focuses on ensuring that an appropriate protection strategy is addressed by the adviser at each interview they have with their client.

“The days of stating in a client’s SoA that, ‘I recommend you review your insurances’ are long gone…”

While risk insurance advice strategies vary between dealer groups, Mr Dieter suggests that all advisers have the responsibility of at least addressing the life insurance issue:  “The days of stating in a client’s SOA that, ‘I recommend you review your insurances’ are long gone,” said Mr Dieter, who added,

“They key is to ensure that all advisers within the dealer group have a good, basic understanding of the importance of protection.  I think that there’s a danger in having dealer groups that are too “silo-ed”.  A good basic knowledge of each facet of the financial planning process will allow advisers within the dealer group to identify their client’s needs and make appropriate recommendations.  We recognise that beyond this, some clients require specialist advice.”

3. Business Continuation

Traditionally, Hillross has been known as a dealer group tending to advise higher net wealth individuals and businesses.  In addressing appropriate business insurance and business continuation issues, the dealer is focusing on an area that is relevant to a significant proportion of its existing client base.

Specifically, Hillross is focusing on ensuring its small to medium enterprise clients’ business insurance needs are adequately addressed, covering, where appropriate:

• Buy/sell agreements
• Key man cover
• Any other ‘business succession’ requirements

The dealer group’s strategy is to not only ensure the appropriate business insurance cover is in place for all its SME clients, but also to have a process in place which will ensure that each business client’s cover is reviewed and updated on an ongoing basis.

In summing up Hillross’s rejuvenated approach to the life insurance needs of its clients, Mr Dieter suggests that “The risk business has been transformed in recent years and, where it was once considered the poor cousin of wealth creation, technical advancements and ideological mind-shifts mean it’s now a dynamic and contemporary industry.”

“Consumers are taking more interest in our profession. Recent market conditions mean that now, more than ever before, the average Australian is thinking about their risk factors. They are seeing, first hand, the impact of things like job losses and are thinking about how they can protect themselves.”

“At Hillross, we have a renewed focus on adviser wealth protection skills throughout these difficult times and beyond. The importance of wealth protection for most clients has never been greater,” concluded Mr Dieter.