On Thursday, research house Investment Trends released the results of their 2018 Planner Risk Report, which surveyed 495 financial advisers that provided advice on life insurance.
According to the survey research, adviser revenue generated from risk advice had declined in the last three years, falling from 32 per cent in 2015 to 25 per cent.
This was pushing more advisers towards insurance providers “to alleviate the triple challenge of admin, compliance and heightened regulation, and at the same time, help them build stronger and longer lasting client relationships,” Investment Trends senior analyst King Loong Choi said in a statement.
As a result, many insurers had created new health and wellbeing initiatives, with a “majority” of advisers understanding the value of such programs for clients.
“In particular, the benefits planners see for their clients are policy discounts, encouraging them to prioritise their health, and giving them the ability to influence their premiums,” Mr Choi said.
But only one in 10 clients were taking advantage of these health programs, research showed.
“The planner population is divided on the importance of health and wellbeing programs when recommending insurance products, as 38 per cent say it is important while 30 per cent say it isn’t,” Mr Choi said.
“This suggests there is a significant opportunity for insurers to bridge the gap between the perceived benefits and value of these programs for both clients and planners.”
These programs are the ‘fitbits’ of the insurance industry. Eventually the shine will disappear and people get sick of a free boost juice voucher when they hit 100 points. The AIA program is so complex I just tell clients good luck understanding it!
How about insurers focus on pricing accurately and appropriately for standard risks rather than muddying the waters with discounts for gimmicky programs that ostensibly reduce their risks. Price right and sustainably to assist advisers and their clients
The fact that AIA are currently giving away vitality for free shows its failing. What customers and advisers want is for the insurers to be cutting their costs including ridiculous salaries and bonuses at the top end and passing these savings back to existing customers premiums instead of gouging them and wondering why lapse rates are increasing.