The growing role of general advice in delivering life insurance solutions is beginning to intersect with another emerging element of the risk advice market – specialist outsourced claims support.
That intersection is taking shape within the Australian Advisory network, where specialist claims service, TPD Claim Support, has become a preferred claims referral solution for advisers operating across both its general and personal advice businesses.
The arrangement brings together two developments that have emerged partly in response to regulatory reform: the increasing use of general advice models to deliver life insurance solutions, and the emergence of specialist businesses authorised to provide claims handling and support.
Staying in the adviser’s lane
For advisers, the practical message is largely about competence, capacity and knowing when to bring in specialist expertise.
TPD Claim Support Founder, Trevor Battersby, says financial advisers are increasingly being challenged by the time involved in managing complex claims as well as the need to remain within their areas of competence.
Under the arrangement with Australian Advisory network firms, advisers can continue to assist clients with claims where appropriate but have the option of referring more complex cases to the specialist claims service.
“You only outsource the process, not the client,” Battersby said, emphasising that the adviser-client relationship remains intact once the claim has been completed.
Australian Advisory’s spokesperson says this provides advisers with a balance between continuing to look after their clients themselves and recognising when a claim falls outside their expertise.
“If a particular claim falls outside their comfort zone, the adviser should seriously consider referring to a specialist that can fill that knowledge or competency gap,” he said.
Specialist support without losing the client
A significant feature of the model is that neither the referring adviser nor Australian Advisory, which has over 30 financial advisers and 84 general advice advisers operating across its group, receives a referral benefit.
TPD Claim Support assesses the claim before formal submission and, where it proceeds, calculates a dollar-based fee according to the expected time and complexity involved. The fee is payable from the claim proceeds only where the claim is successful.
…the benefit for the adviser rests with having the client supported by someone with greater expertise in claims
The Australian Advisory spokesperson added the benefit for the adviser rests with having the client supported by someone with greater expertise in claims, while the adviser remains in control and responsible for the ongoing client relationship.
Battersby agrees this is particularly relevant as specialist insurance experience has left the advice profession and advisers face increasing demands on their time and capacity.
Since the commencement of the arrangement between the two service providers, Battersby says eight declined or highly complex claims referred from a combination of the Australian Advisory personal and general advice practitioners around the country have so far been overturned and paid.
Taken together, the growth of general advice and access to outsourced claims expertise may be pointing to a broader evolution in the life insurance advice model – one in which advisers do not necessarily need to provide every part of the service themselves but instead draw on specialist capability when and where it is needed.
