Having regular reviews can act as a call to action for clients to increase their level of life insurance cover, highlighting the importance for risk advisers of investing in regular face time to improve new business levels, according to new research from MetLife.
The life insurer’s Adviser-Client Relationship Report 2019 surveyed almost 800 consumers and more than 200 small to medium enterprises (SMEs) and found that 60 per cent of consumers had had a review with their adviser in the last 12 months and, of those, 50 per cent had decided to change their level of life cover.
This trend was similarly reflected across SME clients, of which 63 per cent had had an advice review within the last 12 months, and 55 per cent of those who had a review had opted to change their level of cover.
The research also found a high level of adviser satisfaction among those that had had a review in the past year, with 63 per cent rating their experience with their adviser as ‘very good’ or ‘excellent’.
MetLife Australia head of advice strategy Jeff Scott said the research highlighted the importance of regular client reviews in fostering trust and an open dialogue between advisers and clients.
“These meetings give clients the opportunity to have their questions answered by advisers and seek reassurance that the advice and financial products they are receiving are best suited to their needs at that given point in their lives,” Mr Scott said.
“And the payoff is clear, with clients who undertake annual reviews tending to be more satisfied, loyal and likely to go on and recommend their adviser to a third party.”
Mr Scott said it was particularly important that advisers prioritise more face time with clients given the significant number of clients who were considering abandoning their adviser, with 30 per cent of consumers and 50 per cent of SMEs saying they were thinking about either changing adviser or ceasing to use one completely.
“The recent spotlight on the financial services industry has caused clients to take a more active interest in the financial products and services they hold and question the value they’re getting from these relationships,” he said.
“Where clients don’t see value from their adviser, we’re seeing clients looking to either shop around or stop seeing one entirely, meaning it’s critical that advisers put the right measures in place to get to the heart of clients’ concerns.”
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