Technology has changed the way insurers, advisers and clients interact, according to Melissa Crawford. However, clients still seek advice for the knowledge and skills they don’t have themselves.
With access to potentially 13 different retail insurers who offer more than 20 different products each, the Australian insurance industry is indeed a complex model.
Depending on your alignment within the industry, you will either have access to all insurers, some insurers or maybe just one or two.
Although there are some elements of all life insurance products that are similar, it is fair to say that between the different benefits, extras and definitions, mandatory medical and financial limits and underwriting philosophies, there is a host of variations.
But irrespective of your views on the need for “product independence”, the reality is that we are all in a position where in-depth knowledge of the product you recommend is required.
Our knowledge isn’t just limited to the recommendation itself. You also need to consider what clients may already have in place – group insurance schemes, direct insurance policies, or old retail products that are now part of a closed series.
The Association of Financial Advisers (AFA) white paper titled The Trusted Adviser and published in May this year confirms what many of us already know: “The main reason clients use a financial adviser is to tap into the knowledge, skills and expertise that they do not possess themselves.”
That’s not to say there is an expectation that you keep information on all insurance products in you head – whether it be direct, group, retail or otherwise – but an expectation that you would have readily available access to the information required.
Manage and maintain
So what is the best way to manage and maintain relevant information on the insurance industry?
With changes in technology, advisers no longer carry a library of paper forms or paper-based insurance collateral, including product disclosure statements and adviser guides.
This information can now be accessed online and is readily available. It goes beyond accessing PDF versions of documents online – it involves access to interactive tools, which can provide the information in one location.
The latest results of the Investment Trends 2013 Planner Business Model Report show that advisers are calling for improved software and technology support.
Software and online applications that provide efficiency in our business and process are now a necessity. Regardless of whether the research is performed within the business or outsourced, the reality is that someone is performing the function and that someone will want to perform it in the most efficient, timely and cost-effective manner.
What the changes mean
Our research software and ratings information has certainly improved over time, and software and technology will continue to evolve to provide:
• further clarity on what is being compared, and what this means for the client;
• information on the underwriting and claims process, such as bringing mandatory requirement comparisons to the forefront; and
• clarity on the unique propositions of products and offerings to reduce the need to review each insurer’s collateral and adviser guides separately.
Software and online tools that evolve to provide true end-to-end comparision of insurers will ensure we cut through complexity, provide efficiency for all and ultimately fulfil the expectations of our clients.
