The risk store’s Sue Laing has sent a message to advisers to put Future of Financial Advice (FoFA) reforms to one side and place a renewed emphasis on how they add value to their client relationships.
While Ms Laing acknowledges a number of the FoFA reforms,if implemented, will clearly have an impact on the way many advice practices operate, she cautions advisers not to avert their gaze too far from their longer term goals.
In particular, Ms Laing suggests advisers focus on developing lasting strategies that will deliver:
- Longevity and sustainability for advice practices
- Easier, productive, trust-based referral networks
- Inherited trust relationships
One of the key approaches to developing strategies that will deliver these longer term goals relates to how advisers work with the families of their existing clients. In the context of what the risk store refers to as the “Sphere of Risk”, or cross-generation risk management, Ms Laing argues a strong case that the answer lies in driving advice relationships to two or sometimes three generations within the one client relationship as well as horizontally to siblings etc..
Ms Laing concedes established advisers will often be challenged in their attempts to link with younger generations because of different ways in which Generations X, Y and Z prefer to communicate, but argues the effort is worth it:
advisers …will be able to create a path of trust that can span time and generations
“While younger generations may give them a hard time about communicating, if advisers can achieve a link with the children and grand children of their Baby Boomer clients, they will be able to create a path of trust that can span time and generations,” she said.
Ms Laing contends the easiest referral networks are nurtured from developing contacts within the client’s own family. She says the highly-valued commodity of trust, earned by the adviser in their dealings with their client is often transferred in turn to other members from within the family circle, whether they be immediate or extended family. Often this will also extend to lawyer and other adviser relationships if done well.
This challenging link to the three Gens X,Y and Z is to be a strong focus at this year’s risk store Life Risk Forum, being held on Hamilton Island from 16 – 18 August. Four of this year’s presenters will be providing advisers with powerful tools as well as claims case studies that will give delegates a practical impetus into these key markets.
“In particular our guest keynote presenter, Avril Henry, will deliver a ‘faster-than-you-can-take-notes’ series of what to say and do tools that reflect the specific communication and attitudinal characteristics of the X, Y and Z’ers” says Ms Laing. “We have also devised a practical social media workshop to complement Avril’s session, that will cater for the peculiar requirements of our advice industry.”
The risk store’s Annual Life Risk Forum places the adviser and the life insurance industry at the centre of its focus and will deliver a wealth of value for all attendees.
Click here for more details about this year’s risk store Life Risk Forum.
