The features of insurance products have become some of the most important drivers of satisfaction among independent financial advisers (IFAs) and risk specialists, according to the results of the 2012 Macquarie Life Satisfaction Survey.
Product features made it into the top-three drivers of satisfaction for the first time since the survey began five years ago, ranking behind value for money, which retained its number-one position for the second consecutive year.
The quality of underwriting took third place.
Product and support
Last week market research firm, Investment Trends, found that more financial planners are advising on risk insurance as they seek to shore up customer-value propositions and plug revenue gaps left by flagging investment markets.
Interestingly, the Macquarie Life survey concluded that product features are much more important among IFAs than risk specialists, who, in addition to value for money, placed a greater focus on business-development management and underwriting support.
Meeting individual needs
Justin Delaney, head of Macquarie Life, said the results reinforce that advisers are looking for innovative products, and having the ability to provide these solutions is what differentiates insurance providers in the market.
“It is clear that advisers are seeking more innovative insurance solutions from product providers, and we believe this is being driven by end-client demand,” he said.
“In what is otherwise a relatively homogenous space, product innovation is an area where providers can help carve out a unique position in the market and, importantly, offer advisers and their clients insurance solutions which best meet their individual needs.”
A high standard in the quickest possible time
According to Macquarie Life, this demand for innovation was also recognised by advisers, who answered questions about value for money and indicated that continuous innovation is a more important driver of satisfaction than competitive premiums when assessing value.
When it comes to the application process, advisers placed importance on being able to generate and finalise policies quickly and being kept informed along the way.
Having readily available access to underwriters and having queries answered quickly are vital requirements, according to respondents.
“Expectations around time and how quickly tasks can be completed continue to increase among advisers,” Delaney said.
“We are in an environment where efficiency is key for advisers and if they are using the services of an underwriter, for example, they want to know the job is being done to a high standard in the quickest possible time, with minimum intervention required.”
