While consumers are increasingly using online as their initial point for researching life insurance, they still prefer to speak with an adviser before completing a purchase of a policy.

Asteron Life’s Attitude to Life Adviser Insights report1 has found that 9 out 10 Australians find life insurance complex with 65 per cent of consumers choosing to purchase through a financial adviser because of their personalised expert advice.

Asteron Life Executive Manager, Mark Vilo said, “As more Australians move online to research and match their needs, there is, and will continue to be a need for personalised and professional advice. It’s essential for advisers to have an online presence and be seen where your clients are researching. By factoring this into your business strategy and the way you provide your service, you can use the power of the internet to help grow your business.”

The study also found that when it comes to insurance needs there is a broad generational divide. Generation X is more likely to have life insurance cover greater than $1 million. This may be attributed to the fact that they are entering their 40s, which is typically a higher financial risk age group.

Baby Boomers were shown to be ‘very regular users’ of financial advisers primarily because of their life stage and actively planning for retirement. While only 21 per cent of Gen Y’s see a financial adviser regularly, they are generally seen to be early adopters which provides an opportunity for advisers to engage this segment by establishing relationships and tailoring advice.

Insurance is important to the aged 40+ group and as a result, they are more knowledgeable about life insurance and more proactive in seeking financial advice. They also experience more emotional reward for being insured – with 46 per cent saying life cover gives them peace of mind in knowing their family will be looked after.

Mr Vilo continues, “As advice practices wind down for the holiday season there’s an opportunity for a period of reflection and some time to work on the business plan for the year ahead. Many Australians also use this time to reflect on their lives from both a personal and business perspective. Understanding the generational needs of your clients will facilitate meaningful conversations around their individual needs. It’s a good idea to segment your client base according to a combination of risk, income, generation and life stage and build this into discussions.”

Consumers who use advisers have considerable trust in the advice they receive the research found. This is supported by the fact that 44 per cent of clients would like regular contact with their adviser. The desire for more contact is an opportunity for advisers to grow relationships with existing clients.

“Clients are your strongest advocates to people that you may otherwise have no contact with as they can talk to the value of insurance but also you individually. With fewer than half of Australians regularly seeing an adviser there is a huge potential market yet to be explored. As we head into a new year, it’s the ideal time for advisers to review and assess how they can equip themselves for the year ahead and ensure the best possible outcome for their clients,” Mr Vilo concluded.

Source: Asteron Life

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