ClearView has put together a digital booklet of customer reviews to highlight the benefits of life insurance advice and is encouraging other financial services organisations to do the same – for the benefit of highlighting financial advice during the Quality of Advice Review.
The life insurer stated its customer testimonials will help showcase the value financial advisers add at claim time.
ClearView managing director Simon Swanson tells Professional Planner it is time again that industry shows its value to people in vulnerable circumstances.
“Most people are not planning to fail; they’re failing to plan,” he says. “We’re trying to encourage people to seek professional advice. Life insurance and wealth management are complex issues.”
Taxation is one complex issue and insurance is another.
People often make the mistake thinking they have coverage inside group insurance which isn’t always the case, pointing to group insurance not covering trauma.
“This is trying to give some tools to people and advisers where they can say this is the value of advice and this is the value of life insurance.”
Swanson says the industry has campaigns every few years attempting to show the value of advice then it disappears.
“The more we do it the better the industry will be and the better Australia will be.”
ClearView was among the new members of the Council of Australian Life Insurers, a breakaway group from the Financial Services Council, which will take responsibility over representing the life insurance industry in matters like this.
“CALI will take up this kind of issue and that will be a good thing for the new council to do,” Swanson says. “The more insurers can work together to explain the benefits of life insurance and to explain that to politicians and regulators as well.”
There will be plenty for the new association to take on as the industry fights for commission levels which financial minister Stephen Jones has become more open-minded to.
Despite the compulsory superannuation which includes insurance, Australia has low levels of coverage compared to similar OECD countries.