Adviser reviews critical to client retention

A new report reveals that annual reviews with clients are a critical factor to whether the client understands their life insurance and is more likely to refer their adviser to family and friends.

According to MetLife’s Adviser-Client Relationship Report 2018, the report found that 86 per cent of people want to be contacted by their financial adviser every year.

However, only 56 per cent of consumers and just over 50 per cent of small-to-medium enterprises (SMEs) had conducted a review of their life insurance with their adviser in the past 12 months.

MetLife Australia head of retail sales Matt Lippiatt said many advisers are missing a trick by not talking to their clients on an annual basis.


“Our research showed that people want their adviser to show they genuinely care and they want to be kept up to date on a regular basis,” Mr Lippiatt said.

“An annual review delivers on both of these attributes. It helps to build trust – another essential ingredient in a successful adviser-client relationship.”

The report also found a significant difference in the Net Promoter Score (NPS) when clients had a review compared with when they didn’t have a review.

Undertaking an annual review increased the NPS to +30 for consumers and +9 for SMEs, compared with a respective -25 and -20 without a review.

“Reviews are crucial to the ongoing relationship, with the NPS results showing they dramatically increase client satisfaction and likelihood to recommend for both consumers and SMEs,” Mr Lippiatt said.

“This indicates an opportunity for advisers to check in regularly with their clients on their insurances, and to reinforce their value. Advisers have told us doing an annual review leads to increased referrals.”

According to MetLife, the report interviewed around 700 consumers who have purchased life insurance through an adviser, 300 consumers who are considering purchasing life insurance through an adviser in the next two years and 200 SMEs.

Adviser reviews critical to client retention
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Adrian Flores

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

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