8 reasons why you should use independent product analysis
In this article we take a look at some of the benefits of using independent product analysis.
Friday, June 27th 2008, 9:43AM
by Graeme Lindsay
1. Profitability
Consider what your time is worth vs the cost of the service. In most cases, the time that you will save is worth far more than the monthly cost. Your time is best spent in front of a client – you delegate the routine office tasks to staff – using an independent product analysis is just the same. You delegate the role of reading and analysing the various products to a boffin, receiving concise summaries that allow you to select the best product for each client you deal with.
2. Accuracy
With the changes that we see in products each year, it is vital that you understand the strengths and weaknesses of the various products on offer, so that your advice to your clients is robust – i.e. it can withstand the most rigorous scrutiny. With such respect that is due, the BDMs are not going to tell you of their products' weaknesses – only the strengths! The analyst's role is to help you understand!
3. Doing a better job
The output from the analysis service is such that we recommend to users that they incorporate it into presentations, as an appendix, to support your recommendations. This means that the 'analytical' client can read all the analysis to satisfy himself/herself of the merits of your proposal. The non-'analytical' will see that it's there and never read it, but will have more confidence in your advice.
4. Credibility
The fact that you use independent analysis adds to your credibility. Rather than just being a salesperson, you present as a business person investing in the appropriate tools to enable you to better serve your clients.
5. Best Practice
Unless you spend the hours necessary to read and analyse all the product offerings, or subscribe to a service, you are selling product on an unstable basis – how can you be sure that what you recommend is best for this particular client? Because the BDM said so? Because it is what you sold the last client? Because it is the cheapest in the market? If any of these is the reason for your recommendation, you should check to see that your professional liability insurance is paid up to date!
6. Keeping up to date
A good analysis service will provide commentary on the products offered and also on the changes as they are made. We know of advisers who have been really impressed at a roadshow presentation, and have never really critically analysed the offering. As the analyst, we help you by providing critical comments when we see the need.
7. Save time
When you're preparing a case, you've done the needs analysis and have decided what type of products you will recommend and in what amounts. Wouldn't it be great to get a snapshot of the premiums offered by all companies on one page in less than a minute for all the components (i.e. life, TPD, Trauma, Income Protection, WOP, etc) and for up to three lives ! That's what we offer! Having produced the snapshot, you can then narrow the companies down based on quality of product and premium to produce the best solution.
8. Because you're a Businessperson, not just a salesperson!
By Graeme Lindsay, Managing Director, Strategy Financial Services Ltd.
Graeme Lindsay runs Strategy Financial which provides research to advisers on insurance products. The comments in "Strategy Thoughts" outlines his view on recent product and policy changes.
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