A CommInsure executive has defended industry funds against criticism from the Corporate Super Specialists Alliance, saying they do actively contact their members via intra-fund advice – particularly on insurance matters.
Responding to claims by CSSA president Douglas Latto that industry funds are “reactive” when it comes to intra-fund advice, CommInsure head of industry funds Frank Crapis told ifa his experience has been the opposite.
“I’m seeing a lot more activity and engagement on the part of industry funds – I don’t see it as reactive,” said Mr Crapis.
Many funds are building an “outbound advice model” that might be structured through a ‘life event’ insurance arrangement, he added.
Under such an arrangement, the fund might call a member when they turn 40 and their insurance changes – or when their fixed insurance cover tapers off, he said.
The aim of the intra-fund advice conversation depends on the fund’s strategy, said Mr Crapis.
The phone call may be about retaining the member; increasing the awareness of the products within the fund; creating a better understanding of the insurance available to the members; or encouraging the member to consolidate some of their other superannuation accounts into the fund, he said.
“If you look at these funds five years ago they wouldn’t have that sort of engagement at all,” he said.
“If you look at the industry fund offices now they’re much better catered to be able to manage some of the calls coming through and the volumes coming through."
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all