Health and wellbeing programs offered by life insurers are being utilised by only a tenth of clients despite almost 40 per cent of advisers viewing them as important, Investment Trends research has shown.
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.”
Leaders in financial services have the opportunity to widen their moats against upstart competitors. ...
The advice industry is currently in a budding phase but will “bloom in the next three to five years”, according to a new white paper. ...
ASIC has banned a Melbourne-based adviser from providing financial services and performing any function in a financial services business for six years...