Eighty per cent of insurance advisers have altered their service delivery mechanisms in response to disruptions arising from the Covid-19 pandemic according to researcher Investment Trends.
The group reveals that over the last 12 months 30 per cent of planners say they are engaging with their clients more regularly and 23 per cent report that they are scrutinising insurance premiums more thoroughly.
In response to the pandemic 23 per cent of advisers are also paying more attention to the level of service given when selecting providers and 22 per cent say they have accelerated their adoption of new technology.
“Financial planners are re-evaluating all aspects of their delivery of risk advice, from their insurer relationships and technology stack to the way they communicate and demonstrate value to clients,” says Investment Trends associate director King Choi.
“As planners help their clients navigate the pandemic, support from their insurers and technology partners will be crucial to lifting the quality of their risk advice,” Choi added.
According to advisers the cost of insurance is precluding the provision of advice more than any other factor. In a Planner Risk Report survey conducted by the researchers, (53 per cent) said premium cost was the biggest impediment to providing risk advice, followed by compliance requirements (53 per cent) and administration (50 per cent).
In light of this advisers are looking for more support from their insurance relationship managers, Choi says.
“When asked to describe in their own words how insurers helped them navigate COVID-19, planners most often acknowledged premium relief for impacted clients, proactive BDM contact and streamlined online processes,” Choi said.
“Competitive premiums matter for planners and their clients in their choice of insurer, but it isn’t the sole factor,” he continued. “Planners highly value proactive support, meaning that insurers that provide quality BDM support, ongoing communications and quick turnaround times will stand out.”