Churning not a 'massive' problem, issue ‘overstated’
A majority of advisers want to help protect their clients and are not focused on earning more commission by continually replacing policies, says William Buck risk specialist Sam Kitchen.
Speaking to Risk Adviser in an upcoming podcast, Mr Kitchen said he does not believe churning is a "massive issue" across the risk sector, adding that he feels the issue has been “overstated”.
“Most advisers I see want to help [their] client and put the client first, [both] professionally and ethically,” Mr Kitchen said.
He added, however, that he does believe there is a negative perception of advisers that needs to be corrected.
“Until that perception is bridged, that is until the consumer believes in what we do, we won’t truly gain recognition as a profession,” he said.
Some comments by Assistant Treasurer Kelly O’Dwyer and former Assistant Treasurer Josh Frydenberg had not helped the way Australians perceive advisers, Mr Kitchen added.
“I believe when talking about these important issues, we should measure it twice before cutting it, because we only get one opportunity to create a perception and that is perhaps what is lacking in our profession and it is not helped by those attacking it in that regard,” he said.
The discussion between Mr Kitchen and Risk Adviser can be heard later this week with the launch of the latest podcast.
You can listen to previous episodes by clicking here – in this episode, risk specialist and principal of Perera Crowther Financial Services Sam Perera speaks about the Life Insurance Framework and new developments his business will be working on in 2016.
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