[OPINION] Is the risk industry at risk?

That is the question I’m asking myself, after making the audacious decision to return to providing risk management after 20 years of making a comfortable home in the investment world.

Monday, December 30th 2024, 6:00AM

By John Milner - Collaborative Consulting Ltd

Sounding like a Pantene Shampoo ad - this decision didn’t happen overnight, but it did happen. After working in financial services since 1988, I had enough of hearing the blood curdling shrills from risk advisers, having to climb the apparent Mount Everest of education – Level 5. I personally completed all strands of Level 5 in 2007, while working through to my CFP and CLU designations. I consequently made Level 5 the minimum standard for my business at the time, well before it became mandatory for AFAs.

By 2023, all advisers were required to be licensed under a FAP. I believe this was the turning point of my personal risk adviser’s career, who after 20 plus years of acute amnesia, began actually emailing me. What a revelation.

He did know who I was after all, and he did care about my welfare. I then excitedly speculated on how he would fit 20 years of birthday cards in my mailbox. But alas, it wasn’t to be. I guess the renewal commission just didn’t cover such things like, you know, communication and stuff.

Now getting to the insurers themselves. Surely it is solely the fault of those bottom feeding advisers that have put risk in this situation. I decided it was time to make a difference in the world of risk management and dedicate some of my time to reintroduce professionalism and service to this industry.

However, I was advised “it is not easy obtaining an agency right now”.

This by a seasoned administrator, working for a long-time and well-respected brokerage business. How could this be I thought. And why? Could Kiwis be possibly over-insured?

Not appreciating the concept of the word no, I subsequently contacted five insurers by both phone and email. Apparently, insurers lack the ability to speak, so the internet is the sole means of communication these days.

On average, for the companies that did finally respond, it took a minimum of two weeks. For others, like Partners Life and nib, well they appear to be missing in action. The surprise however, or not, was Fidelity Life. This little Kiwi battler, who themselves admitted to dropping the ball several years ago, is now attempting to rise like a phoenix from the ashes.

My call was returned on the same day, which was a Friday afternoon. Over the weekend I received an agency questionnaire and by the following week I received my agency confirmation.

And unlike the other life companies, they actually invited me into their offices for training with a staff member.

I do at this point wish to thank Asteron, who did finally speak to me in their offices and issued me with an agency. Thank you, Michael. And AIA for issuing me with an agency. Although I haven’t managed to speak with a human yet, I have every confidence there is one left in that building somewhere.

After what seems like an epic war of the minds, I’m on the way to delivering risk mitigation strategies to the public. But should it be this hard? And does this non-existent level of service provide me with any confidence of security for my clients – no.

From the outset, insurers had such a low expectation from an enquiring adviser, while at the same time, overall, provided such an appalling response and service. Rather than welcome me, it has been rather adversarial from some.

The gossip on the industry grapevine is no better. With talk of well below levels of staff, embattled BDMs and the odd nervous breakdown thrown in.

Our country, like many others, does have a staffing issue. However, somehow by contrast, my world with investment could not be any more the opposite. With BDMs working very hard to create enduring relationships with their business partners.

If insurers want to make a change, it will have to come from the top. As the saying goes – “the fish rots from the head down”. That means boards down, who I hold responsible for this situation. After all, that’s your job.

We could also do with some of that “reach for the stars” culture from our cousins in Australia when it comes to advisers. You have lost the ability to gain your CLU designation because of poor support. It’s time to lift your game and walk the talk of professionalism as you wish to be regarded as so badly.

One last note to the boards of all insurers; efficiency is great, but as one dear friend reminded me recently, “culture beats efficiency every time and twice on Sunday”.

Tags: Opinion risk