Our report on AIA Australia’s Round Table debate on whether life insurers should offer basic advice to policyholders drew considerable reader attention this week…
Life insurers should be able to give policyholders quicker, simpler service on basic life-insurance matters. That was the general consensus of panellists taking part in the recent AIA Australia Round Table, who also agreed the role of professional advisers should be preserved and protected.
Keely O’Brien, CALI’s GM Corporate Affairs and Strategy, led the debate saying the challenge with the proposed new class of adviser is how they deliver more advice to more Australians.
She says consumers can contact their general insurer and make alterations to their cover over the phone, and they expect to be able to do the same thing with their life insurance – thinking it is a minor administrative task to amend their existing policy.
Having listened to some of the calls clients make to life insurers, O’Brien said many customers want to have their requests attended to right away – but are frequently told this can’t be done.
“If they have to wait two weeks for a call-back, they lose interest and the issue never gets resolved,” she said.
…this would not replace fully qualified financial advisers, but complement them
O’Brien said the proposed new class of adviser could play a key role, offering free, entry-level advisory services through insurers delivered by advisers new to the industry. She said this would complement fully qualified financial advisers.
“Basic service conversations, such as reducing cover, could be managed directly with insurers,” she said. “But once it moves into comprehensive advice, that’s where the partnerships with professional advisers are critical.”
During the Round Table she signalled support from the FAAA and the FSC that would allow the new adviser class to act as a stepping stone for younger professionals entering the industry.
“We are laser focused on what we would like to achieve for insurers,” said O’Brien. “We’re not talking about cutting advisers out, it’s about having good customer service.”
See: Resolution Life Launches Cover Adjustment Tool
Click here to access the AIA Australia Round Table – Advice at the Crossroads video series.
Click the image to watch Part 3 of the AIA Australia Round Table, in which the conversation revolves around considering the new class of adviser…
If a policy holder who was recommended and written up by an Adviser, receives an annual policy and premium update that includes a premium increase, this is not a joyous time for clients who are already financially stressed with all the inflation led cost of living rises.
The immediate reaction is to cancel or demand a big reduction in their premium with little understanding of the potential impact of the quick impulsive decision.
The Adviser can reiterate the need and then let the client make an educated choice.
If the Life Company who will employ an order taker with no relationship, or understanding of the clients needs, is able to instantly reduce cover with no questions asked, how is that best interest for the client?
Absolutely, well said Jeremy. Can only shake my head and look at my feet for what is transpiring in our once great 'profession'.
If a client holding an AIA policy called up AIA for ‘impartial general advice' for a simple reduction or increase, would AIA do the research to determine if that modified AIA policy was still in the client's best interest vs other insurer products?
Doesn’t sound like a ‘client best interest’ model to me.
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