Insurers and adviser bodies criticised for lack of new adviser support

New advisers to the industry should almost always be part a supportive practice, not out flying solo. I believe it is the obligation of the advisory practice to create a succession plan to service their clients, not the insurer. Also to counter your argument regarding low attrition rates, remember that insurance companies will not run new adviser workshops unless it is finally viable for them to do so; increased production.

This seems like more of an advertorial article than news to me...

alternative headline:

New Advisers need handouts, should buy leads.

When I joined AMP back in 2005 I had already been in the industry about 2 years. In those days they laid on an all-expenses 10-day training boot camp for "new advisers" in Sydney. After less than 6 months back in NZ, out of the 6 who went I was the only one left. At the time AMP had a full support package including the training, and thousands of dollars in payments, over two years, to the practice and the adviser to support their income and development.

If a package like that doesn't work, nothing will. Because throwing money at it is not the answer.

And nor, I might say is buying leads and 'contact services'. How's about just getting off your butt and seeing some people! That's how you make sales!

1. The new regulations does not encourage new advisers - up till now, there has not been a 100% agreement in what the regulation is trying to say - pretty much like a lawyer trying to tell a farmer how he should run his farm.
2. The costs of compliance - new blood are likely to be young and still have student loans to repay, to ask them to incur more debt even before the journey begins and they don't even know if they will even reach their destination?

Lastly, my advice to new advisers is to treat this as your business and don't expect to be spoon fed with leads. This business is no different from starting a take-away, you look for your customers, nobody will give them to you. Look at your advantage over other businesses, you have no plant & equipment to purchase, neither do you have to keep an inventory of stocks. In other words, your overheads, is YOU, but having said that, I must admit #1 & 2 above does not help.

I'm inclined to agree with your comments. However if new advisers on my course had been put into supportive practices there would be a higher attrition rate. I believe if they had had the leads, referrals and support 80% would still be in the industry today. Insurers need to show the public the benefits of having an adviser through specific marketing. They could also help by bringing our communities to us through charitable involvement. I was fortunate that the practice I initially started with in this industry were supportive and more like a family. I learn't alot but due to distance it became inappropriate. I've also had very supportive BDM's which has also helped my jump to going solo. I believe that if new advisers had 5 pre-qualified appointments sitting in their Inbox on a Monday and could go out and sell it would make the world of difference to new advisers.

@NH. In any biz, there are only a handful of winners. When I started in the biz almost 30yrs ago (not in NZ), all we got was product & sales trg, numerous role plays, with zero leads and we make our own calls and appointments. We were taught to be "hunters" not just survivors.

Next, place clients before self - it takes time, but once you've gain your clients' confidence, only you can make yourself fail.

Maybe things have changed over the years, or is it just NZ?

Finally, and yes, sadly, poor regulations have caused many good advisers to leave the industry. I am all for regulation to weed out the cowboys.

Instead of nitpicking about the pros and cons etc...why not take a positive, and help the newbies.
When I started a few moons ago was given C and D clients to see..better then doing it cold...with little experience managed to keep my head above water and earn some commission...no renewals and no ownership of clients....then after a few months with training got the hang of it and prospected myself..friends, contacts, groups etc etc..hard work. But that was 20 odd years ago...now I reckon it would be easier to do it cold..especially with the groups that are out there..re lead generation programmes etc etc...just knock on the right doors and someone will help you ....they all want the business...push those buttons instead of pleading a sad sack story...you do make yourself look a bit dim Nicola....good luck.

Sorry missed your comment that you have gone solo now...did you leave your original clients with you broker who you worked for and helped you when you were getting started or letters of appointment abounding?

I've just tried to train two sub brokers. I bought them leads, booked in appointments for them, gave them product training etc etc and they just didn't have what it takes...be very careful...not everyone can do this job properly...it's not as easy as giving them leads...

For your information I did not work off of A,B,C, or D clients in my old practice. All my leads were my own from putting myself out there. I had no form of transport in town but I could see with other advisers how demoralising it was seeing C,D clients. I have built my business through referral systems with professionals that I meet regularly. I support local child related charitable causes, I sponsor the local Netball team and I work really hard as well as having 4 kids (partners at home!). Things really turned around for me when I got a telemarketer on board when I was with my old practice whom I paid for. The more people I saw, the more people talked and the more referrals etc
This is why I initiated this business venture. A business partner operates the venture as I am busy in my own practice. She is not in financial services but turned 60 health clubs in South Africa from near liquidation to a success through telemarketing campaigns and teaching her sales teams the importance of referrals. Always ask...
Also being a perfectionist.. IF it's not qualified it's not a lead...
She could see a gap. Alot of clients not being serviced that under regulation should be contacted. I'm aware that it's nothing new. I was also aware of the high calibre of individuals that live in my area who are well spoken and wanted work. Families were leaving the island due to the lack of work. You see Waiheke Island has changed. It's no longer Cadbury, Fruit and Nut ...well nearly! It's an island of successful families and people. One parent works in town and due to having kids on the island the other parent stays on. These mothers/fathers want to work, have had successful jobs and I believe are perfect ambassadors for companies in our industry. At the end of the day if it just gives this little bit of paradise more work it has been worth doing. Thanks for all your comments.. Not sure about the bit dim one we might have to agree to disagree on that one. Hope everyone has a lovely weekend...TaRa p.s. This may actually explain why I left the practice in town. I'm actually a very loyal person..

Back to how Insurers could help us more. Instead of spending thousands of dollars on over the top conferences why not educate us simply and put the savings into bringing clients too us. Again through charity...for example $5,000 local sports grants available by xxx insurer. Pick up the forms from your local adviser. Television commercials showing the benefits of what we do and having an adviser compared to calling 0800 and pressing 1,2,3,4. Sponsoring free wifi on transport in certain areas...an introductory opening page stating sponsored by ..... Give your local adviser .... a call. My list could go on and on

I personally think anyone entertaining the idea of starting out as an adviser should ensure they have sufficient cash flow to get them through the first 12-24 months. This being my second year in business as a sole operator I have found the majority of commissions received thus far are going straight back into the business. I've tried using telemarketing outfits to generate leads (I wont name which ones) but found them all to be useless so now don't use them and wont in future. It's been getting out in front of other professionals in different sectors etc that has been where my best business has come from, and referrals from friends/family and satisfied clients. However, if I didn't start out on this journey with some capital beind me I would already be back in the corporate environment slaving away making someone else rich. Maybe those recruiting new advisers into the industry need to be very frank with these newbies and tell them its bloody tough and they have to be prepared to get off there arses and find clients as opposed to relying on being given them, but they must also have cash in the bank as they could go months on end without receiving a commission?
But hey, isn't it a great industry, I love what I do and wouldn't have it any other way now, and thumbs up for regulation, it's a good thing!

What happened to the idea of hard work? In the past you didn't get everything done for you, if you couldn't find clients and make sales, after a while you didn't turn up at the office anymore. Everyone want's it easy these days. If it was easy we wouldn't get paid the money we do, simple as that. I remember a sales manager telling me over 20 years ago, there's reasons, there's excuses, but we get judged on our results. By goodness, he was dead right.

Nicola, you have obviously never worked for an insurance company before... if you had, you might have more appreciation for the huge amount of work they actually do to support you.

Of course I'm aware of the huge amount of work everyone does. Most of my BDM's start at 6am, sometimes earlier and will reply to questions well after working hours. They work really hard. At no point in this article or conversation have I stated otherwise. Insurers do there best but are constrained by the corporate wheel, the time things take to happen is far longer than with small companies and ideas may not come to fruition due to corporate suicide. The question might pop in to the mind, what if it doesn't work?
There is an issue in our industry with retention and it needs to be addressed and I know that Insurers are continually trying to address it.
You are right in the fact that I have not worked in an insurance company before but you are totally wrong in the fact that I am not appreciative of the amount of work that goes in to support us. From the BDM's to the underwriting teams, to people in claims that see outside the square and do their utmost to make sure those claims happen, as I recently experienced this week. I am totally aware of the amount of work being done by everyone involved. I have to say I do like a good debate but by no means do I want anyone to think that I'm not aware of the work involved.. We all work hard and try our best and I am very appreciative of my support networks. Any more comments or ideas on retention from advisers would be great and probably a good thing for the Insurers to see..This is how ideas are formed, from debate and analysis. There are some great people out there who would make fantastic advisers but don't have 12 months of funds to get by in the beginning etc.
At the end of the day what the telemarketing initiative is doing is creating a way for advisers to have their database serviced and updated. Therefore advisers with thousands of clients know that the work is being done at an affordable price by a company that has a reputation to uphold, will provide pre qualified leads from their database through a provision of advice, update information (email addresses etc). We are providing a service, not a free ride. If an adviser goes to five appointments and makes no sales I agree advising may not be the thing for them. At the end of the day you buy something intangible from someone you like and trust.
If you looked at the costs of our endeavour it would most likely be more economical then doing it in house. We are not greedy.
I don't do my own accounting, I outsource it as they do it better. I don't have time to do the floors in my house, I like clean floors so I outsource that. I really dislike scanning, my PA does that. Outsourcing makes our lives easier so that we can do what we do well more efficiently.
If clients are contacted regularly they will be retained. Retention of clients + Retention of Advisers = More Sales. We all win.
Anyway I'm signing off now and again no offence was ever intended. I'm off to do something I'd never outsource. Making a yummy dinner which hopefully all the kids will like without any fuss, drinking a glass of pinot noir and listening to the banter of four beautiful children and their busy if not hectic day at school..

Hey Nicola..read the book by Frank Bettger..it's a bit dated..but you may learn something from it....life doesn't give hand outs..do the graft eh..it's a tough game...but if you crack it, it works..I'm involved in a lead scheme with a great group and I'm on a win-win..maybe you moving in the wrong circles Nicola??
As for for the four kids and hubby at home...what do you want a violin...come on..get with it and suck it up..no one has pity in this game Nicola..we all have bills to pay just like you!

Nicola I suggest that Section 71 of the Financial Markets Conduct Bill will likely put a stopper on charging newbies $20 for each pre-qualified lead. Whilst I applaud your enthusiasm Nicola, I suggest that you need to think a little bit further prior to launching your scattergun attack on one and all. Over the years I have tried to bring at least six people into the Industry and I regret to say I failed with all of them. I am quite willing to shoulder a portion of that blame but it cost me dearly and it is not something I wish to indulge in again too soon. The Industry as a whole, every aspect of it, I believe needs to re-examine its modus operandi. When we are able to operate a business model similar to our Fire and General cousins, then I believe we will start to have a consistent and profitable ongoing business. This will be able to attract suitably qualified individuals and sustain them and the business on a long term basis. This in turn will assist in making the whole business operate on a more professional basis. The business needs to change, quite how this change is brought about I am not sure, but changes are on the horizon and they will happen like it or not.

Curious..how does a nobody get a mention on this blog???

I'd be interested to know what insurers are meant to do for new advisers precisely. How many insurers should support each new adviser? What do they get out of it or is the support a one-way street? There are enough examples of insurers helping advisers yet these are the very same advisers that up and jump ship to the next insurer that comes knocking.
Clearly the industry needs to address the issue of under-insurance, in part due to the low numbers of advisers. When you decided to become an adviser, I presume it was because you felt there was some reasonable income to be made from the industry. That has not changed, there is good money to be earned and no shortage of potential clients. Perhaps better planning and marketing to an identified target market would have helped to generate business from the outset. Like some have said before, most people got where they are through their hard work rather than handouts from insurers. Insurers are also looking out for themselves too...