• If you’re a financial services product manufacturer and you’re concerned about the poor level of quality advice and senseless churn that’s pervading the sector…

Its not news that Compliance has not overly improved the standard of advice that’s coming from many corners of the financial services sector. Nor is it news that policy churn is being reported at an all-time industry high!

The result is a growing underinsurance problem in New Zealand, a lack of good, clean fresh business being written, and commissions being paid over and over again on what is in effect the same premium dollar.

This has to be long-term bad for the financial services sector as a whole, the reinsurance sector and the consumer alike. Someone is paying for this!

  • What is the underlying cause of these problems?

We at RMS believe that the single greatest issue underlying these shortcomings is that many of todays ‘advisers’ are simply not equipped to be highly effective financial advisers, and they’re therefore unable to write good quality, fresh business. For these advisers, churn makes for easy pickings as it doesn't require a tremendous amount of skill!

Contributing further to this problem is that incredibly, even the skill of prospecting for new clients is a dying art, with increasing numbers of advisers becoming dependent on someone else to generate their leads for them, and often at great expense!

And guess what? Much of the telemarketing that underpins this lead generation is overtly based on churn i.e. “Let us review your insurance to see if we can get a better price/deal for you!”

  • If you agree there’s a problem, can we agree a solution?

We believe that a significant part of the solution is to go back to the future, and reequip financial advisers with the necessary skills to find and approach prospects, provide high quality financial and insurance advice, and write good quality, clean, fresh business.

Many outfits claim to provide training, some provide template questionnaires, but none provide a truly turnkey end to end solution.

InControl™ is such a solution, and is being exploited, albeit by a relatively small numbers of adviser firms, to seriously up skill their advisers’ ‘advisory’ and ‘sales’ capabilities.