Advisers told to meet changes or become extinct
Insurance advisers will need to meet the challenge of what promises to be a new era for the industry – or facing being “dinosaurs” says AMP Financial Services’ head of distribution David Chote.
Monday, April 23rd 2007, 10:21PM
by Rob Hosking
“The standard has been ‘we made a sale’ and that is just wrong.”
What he calls the “sales culture” in the industry has been sending the wrong incentives.
“A lot of people say New Zealanders don’t want to pay for financial advice. I don’t believe that.
“What New Zealanders want is financial security for life.” “Our response to that, as an industry, has been to say ‘A ha, you want life insurance’. And the challenge for our industry is to change that.”
The greater expectations which go with an ageing population, along with a higher level of financial awareness which will accompany such policy innovations as KiwiSaver, mean insurance advisers will no longer be able to just get away with selling a product, Chote says.
And when rules requiring greater disclosure of insurance advisers’ interest arrive - probably in the latter part of this year - insurance advisers will have to be ready for it, he says.
“I think those who embrace the change will come out alright. And the consumer will be better served.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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