{"id":56348,"date":"2021-06-24T09:31:38","date_gmt":"2021-06-23T23:31:38","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=56348"},"modified":"2024-10-30T08:44:47","modified_gmt":"2024-10-29T22:44:47","slug":"risk-advice-in-60-minutes-think-it-cant-be-done-think-again","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/06\/24\/risk-advice-in-60-minutes-think-it-cant-be-done-think-again\/","title":{"rendered":"Risk Advice in 60 Minutes. Think it Can\u2019t be Done? Think Again."},"content":{"rendered":"<!-- Either there are no banners, they are disabled or none qualified for this location! -->\n<div class=\"header row\">\n<div class=\"intro\">\n<h3>The <a href=\"https:\/\/www.astutewheel.com.au\/\" target=\"_blank\" rel=\"noopener\">Astute Wheel&#8217;s<\/a> Michael Topper takes advisers through a step-by-step consideration of what it takes to produce and deliver life insurance advice in 60 minutes&#8230;<\/h3>\n<\/div>\n<\/div>\n<p><!--more--><\/p>\n<p>Standard 5 of the Code of Ethics requires that:<\/p>\n<p><em>All advice and financial product recommendations that you give to a client must be in the best interests of the client and appropriate to the client\u2019s individual circumstances. You must be satisfied that the client understands your advice, and the benefits, costs and risks of the financial products that you recommend, and you must have reasonable grounds to be satisfied.<\/em><\/p>\n<p>The FPA\u2019s Explanatory Statement for Standard 5 goes further and says:<\/p>\n<p><strong><em>This means that your advice must be clear and simple<\/em><\/strong><em>.<\/em><\/p>\n<p>ASIC found that of 202 life insurance advice files reviewed as part of its controversial Report 413 Review of retail life insurance advice, 37% failed to meet the relevant standard for compliance with the law and of the 63% that passed, there was significant room for improvement with regard to the quality of advice provided.<\/p>\n<p>Poor advice highlighted in the report included:<\/p>\n<ul>\n<li>\u2018the complexity of the client\u2019s personal circumstances was <strong>not<\/strong> taken into account\u2019\u00a0and,<\/li>\n<li>\u2018industry participants employed \u201c<strong>rules of thumb<\/strong>\u201d to provide guidance about appropriate levels of insurance, for example &#8211; a multiple of the insured person\u2019s annual income\u2019.<\/li>\n<\/ul>\n<p>To stay in business, risk advisers are going to have to find a way to strike a commercial balance between these competing forces and rethink traditional paper-based processes that are both time-consuming and inflexible, requiring, as they do, information to be captured and re-entered multiple times from initial fact find through to the statement of advice.<\/p>\n<p>But how are risk advisers to find the extra time to provide a higher standard of advice and adhere to the more stringent level of compliance?<\/p>\n<p>Providing compliant life insurance advice that is focussed on client needs and meets today\u2019s standards means having very efficient, effective, compliant and valuable software and processes.<\/p>\n<p>Then you will be able to provide valuable advice efficiently, including generating short and simple, comprehensive and compliant, risk SOAs.<\/p>\n<p>To do it, you need electronic tools that allow you to quickly and efficiently:<\/p>\n<ol>\n<li>Gather key client information electronically prior to the meeting \u2013 after all there is no value in having a client watch you fill out a paper-based fact find for 40 minutes<\/li>\n<li>Conduct a comprehensive, compliant and efficient Risk Needs Analysis in the client meeting (face-to-face or Zoom) using integrated Insurance Calculator Software<\/li>\n<li>Undertake product research to find the best value-for-money policies<\/li>\n<li>Generate a compliant Risk SOA quickly because all the required information is in the database<\/li>\n<\/ol>\n<p>The key to success is employing a process whereby each of the above steps is conducted thoroughly and efficiently with data flowing seamlessly to the next part of the process, while simultaneously and automatically producing an all-important audit trail.<\/p>\n<p>Do it well and you will not only be able to provide comprehensive and compliant risk advice in 60 minutes, including generating a short, simple, compliant and plain English SOA, you will also create an interesting, interactive and visual experience which will be educational and valuable for your clients and become part of the value chain of your advice.<\/p>\n<p><strong>Step-by-step<\/strong><\/p>\n<p>To provide insurance advice, be it part of a scaled or comprehensive advice process, you need to complete a number of steps. Many of these steps can now be handled, either fully or partially, electronically. Each step should need to be done <em>only once<\/em> and the information should automatically flow into the downstream tools, reports, file notes and documents.<\/p>\n<table width=\"100%\" cellpadding=\"5px\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"10%\"><strong>Step<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"40%\"><strong>Process<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"40%\"><strong>Tool<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">1<\/td>\n<td width=\"274\">Determine the client\u2019s financial circumstances through an electronic fact find process<\/td>\n<td width=\"283\">Have clients complete an electronic About You Questionnaire prior to the meeting<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">2<\/td>\n<td width=\"274\">Determine the client\u2019s objectives and needs<\/td>\n<td width=\"283\">Have clients complete an electronic Goals Questionnaire that contains short prompts to assist them<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">3<\/td>\n<td width=\"274\">Determine the subject matter of the advice sought<\/td>\n<td width=\"283\">Discuss the client\u2019s circumstances and goals, either in person or virtually using video meeting technology, for example Zoom, Skype, Webex, etc.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">4<\/td>\n<td width=\"274\">Determine the scope and scale of advice<\/td>\n<td width=\"283\">Use an electronic Scoping &amp; Scaling Tool to determine the segments of advice to be addressed and what specific aspects of life insurance will and won\u2019t be covered.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">5<\/td>\n<td width=\"274\">Prepare a letter of engagement and an authority to proceed<\/td>\n<td width=\"283\">This should be automatically generated by the system you are using, populated with relevant information from the above steps<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">6<\/td>\n<td width=\"274\">Conduct a live insurance needs analysis meeting identifying what the client wants to achieve and the types and amounts of insurance required<\/td>\n<td width=\"283\">Use a comprehensive and compliant Electronic Insurance Calculator<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">7<\/td>\n<td width=\"274\">Determine the best ownership structure for the insurance<\/td>\n<td width=\"283\">Use the Electronic Insurance Calculator to determine the best ownership structure and record the decisions made in the calculator<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">8<\/td>\n<td width=\"274\">Conduct research regarding the best product options for the client and the implications of cancelling any existing insurance and enter key information into the software<\/td>\n<td width=\"283\">Use Risk Researcher, OmniLife or research direct with Insurer<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">9<\/td>\n<td width=\"274\">Auto-generate a compliant strategy paper, or\u2026.<\/td>\n<td width=\"283\">Use a Strategy Paper Generator<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">10<\/td>\n<td width=\"274\">Auto-generate a short, compliant SOA in plain English, so that your advice is clear and simple<\/td>\n<td width=\"283\">Use a Statement of Advice Generator that brings all the required information together<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">11<\/td>\n<td width=\"274\">Present recommendations to the client<\/td>\n<td width=\"283\">Either in person or virtually using screenshare meeting technology<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"56\">12<\/td>\n<td width=\"274\">Complete and submit application forms and follow up an any issues until completion<\/td>\n<td width=\"283\">Usually electronically. Either in person or virtually using video meeting technology<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<div style=\"background: #eaeaea; padding: 20px; margin-bottom: 20px; clear: both;\">\n<p><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2021\/06\/Michael-Topper.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-56349 size-full\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2021\/06\/Michael-Topper.jpg\" alt=\"\" width=\"150\" height=\"180\" \/><\/a><em>Michael Topper is a Director of <a href=\"https:\/\/www.astutewheel.com.au\/\" target=\"_blank\" rel=\"noopener\">AstuteWheel<\/a>. AstuteWheel has developed a next generation technology-based solution that allows information to flow seamlessly along a workflow path from beginning to end.<\/em><\/p>\n<\/div>\n<p style=\"text-align: center;\"><a  class=\"vc_btn vc_btn-black vc_btn-sm vc_btn_square \" href=\"https:\/\/riskinfo.com.au\/adviserfocus\/\" >Back to Adviser Focus Main Page&#8230;\u00a0<\/a><\/p>\n<!-- Either there are no banners, they are disabled or none qualified for this location! -->\n","protected":false},"excerpt":{"rendered":"<p>The Astute Wheel&#8217;s Michael Topper takes advisers through a step-by-step consideration of what it takes to produce and deliver life insurance advice in 60 minutes&#8230;<\/p>\n","protected":false},"author":3,"featured_media":56365,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6868,4474,7],"tags":[],"class_list":["post-56348","post","type-post","status-publish","format-standard","has-post-thumbnail","category-adviserfocus","category-practice-management","category-technology"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/56348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=56348"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/56348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/56365"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=56348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=56348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=56348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}