Ballantyne: Advice businesses should be more businesslike
Insurance advisers should take some tips from other industries when it comes to investing in their own practices, Partners Life's managing director says.
Thursday, April 20th 2017, 11:34AM
Naomi Ballantyne said advisers needed to spend more time and money investing in building up their businesses as well as simply giving advice.
She said advisers needed more sustainable business ownership skills.
“Too many advisers still see themselves as sales people and don’t therefore invest money, time or thought into building their businesses,” she said. “They see their client base as their sole asset, rather than understanding the value of their entire businesses – processes, systems, brand, commercial offices, referral partners, skilled staff, passive renewal income…”
She said advisers also needed to find a better way to educate consumers about the risks they face, and the financial consequences of those.
They needed to be made aware of the extent of their Government entitlements, she said. “Having informed consumers should increase the number of consumers who proactively seek advice – reducing the NZ underinsurance gap – which is really a disgrace.”
But Ballantyne said the industry also needed to improve its processes around replacement business.
She said advisers and sales people should not give replacement advice or make comparative statements about products and providers unless they had knowledge of the facts and were not simply repeating what they had been told by colleagues, BDMs or other advisers.
“Too much risk and damage arises out of clients being misled into solutions that are not as they have been represented.”
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