In order to tap into a majority of Australians that are under or uninsured, financial advisers need to have the confidence to have the ‘risk conversation’, says BT life insurance head Phil Hay.
In an exclusive interview with ifa, Hay said there is a substantial opportunity for advisers to broaden their service offering into risk products, but they need to get over their preconceived notions.
“Adviser interest in insurance is increasing – we see a definite uptick – but I also think the industry has created this perception that the area of insurance is complex,” he said.
“While the terminology can be difficult and the conversation can be hard to have, it’s no more difficult than the investment or debt or lending issues that advisers already deal with.
“It’s just about moving to that more holistic mindset.”
Hay suggested that an environment of current and recent volatile markets, where some consumers may have experienced a “pain point”, is the opportune time to have the risk conversation.
“You need to link [insurance] to the client’s other financial needs and say ‘now that we have the investment strategy in place, now we need to protect that’,” he said.
Hay said that the traditional stigma around life insurance no longer reflects the range of insurance products on offer and that the modern life insurer’s role is to help support the adviser’s business and the transition to holistic advice.
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