Caring comes before knowing
Most consumers don't really understand what a good insurance adviser does - so it doesn't matter what letters are placed after your name, what matters is how you explain to them what you do. This brings us back to an old industry adage: "they must know how much you care before they care how much you know".
Monday, February 27th 2012, 9:00AM 
3 Comments
by Russell Hutchinson
Like it or not, insurance advisers aren't like lawyers or accountants. "LLB" and "ACA" and other designations tell consumers something about a person in those professions very quickly. No such equivalent yet exists in the consumer's mind for insurance advisers. It means you have a longer job to demonstrate your worth.
In learning to become an adviser you must become competent before you can do a good job - but in the communication stakes it's the other way around. Clients are always more interested whether to trust you, and whether they like you, first. These come from having something useful to do for them, and showing that you care enough about the outcome for them. Put simply, you need to tell them what a good risk review is, why they should have one, and why you're the best person for the job.
You will need to have a one-liner elevator pitch "I make sure that no-matter what happens in life money isn't a problem". You need to have a more detailed description for the next stage "I look at your situation, and all your existing cover, and what's available in the market and come up with the best plan for you - your budget, and your family". You need to have examples of how that's been done in the past - preferably sample plans (with names removed). The aim should be that the client sees the review and advice as valuable in themselves - regardless of the actual product or recommendations. Why? Because that's the only value you give - after all, the insurer provides the insurance.
As yet, no collection of letters adequately communicates the value of that advice. Professional qualifications are important of course, but far more important for their content and the skills they give you.
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Maybe I've got it all wrong and you actually wrote this article "tongue and cheek". But advisers will not see it this way.
Simon Hassan, the IFA and Massey University must be feeling pretty stupid, now knowing after reading your article that all their hard work attempting to raise standards was really a waste of time, apparently.
Yes there is some very good risk advisers in NZ. I am very proud to have and to continue working with some of them. However, looking at the big picture as an industry, that I am sure would like to be recognised as a group of professionals, experience and the letters after your name are both as equally important.
As an industry, we can't have both over night but in time we can. Your article hinders the industry's evolution in the long term.
Giving you the benefit of the doubt here, your objective of the article may not have been to hinder the industry but the reality is, it is exactly what many, many advisers want to hear.
Russell, perhaps as a group we should be providing what advisers need to hear, rather than what they want to hear.
And yes I am very proud to be an AFA, CFP and CLU. You will never hear me promote the concept of striving to meet a minimum allowable standard.