Sovereign boss: Don't fear banks
Risk advisers shouldn't think of the banks as their mortal enemies, says Sovereign’s general manager, adviser distribution Patrice de Marigny.
Tuesday, March 26th 2013, 6:00AM 
7 Comments
by Susan Edmunds
He says advisers have always had competition from other parts of the industry for business.
But lately more have complained of banks encroaching on their territory as they honed their sales processes.
De Marigny put that down to the fact the market was not growing as fast as it should, so the squeeze was on to capture market share. “There’s not enough happening to grow the number of customers who buy insurance. There are more people trading off a similar-sized market. Someone is always going to gain at someone else’s loss.”
Sovereign products are sold through ASB branches. But De Marigny said advisers, especially those outside Auckland working with clients who were fiercely loyal to local providers, should not be too worried about the banks’ movements in the insurance space.
“If the customers know that you look after them and they trust you and you understand what they need, you’re not just someone who holds the policy.”
People who worked on developing personal relationships would be valued by their clients, he said. "That is the secret weapon."
But he says no one should think they own their clients.
Every day, people are marketed at one way or another, whether it's from supermarket loyalty schemes or at the banks. “Our job is to be top of mind and make sure you represent value.”
Advisers could think of themselves as operating in the same way a private bankers, he said.
People often aspired to deal with private bankers rather than general bank staff because it made them feel special and valued.
“Advisers are the personal bankers of insurance,” he said. “Not cheaper, but better service.”
De Marigny said advisers should put as much effort into retaining customers as they did to finding new ones. "Growing your piece of the market comes from growing new business and retaining what you've got."
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Comments from our readers
To assume that being a "personal banker" is some form of esteemed position over a professional impartial adviser is insulting. I work for my client's best interest, not for the best interests of a bank.
Despite the personal relationship, a diffident client would find it difficult not to do what the personal banker asks when his/her mortgage has just been approved.
I had a discussion with an underwriter who had worked for a couple of the bank assurers, and she indicated that the non-disclosure problem is huge!
The whole question of bank clerks selling insurance is bound to bounce back and bite them in the bum in time - meantime, advisers should reinforce the value that we add to the relationships with clients at every opportunity.
I suggest you read Patrice's article again.
The reason? The Client needed a 100k business loan and the Bank made it clear that they would only advance the money if the Client took a replica Insurance Policy from Sovereign to the policy they had with Asteron i.e. MPI with LOE top up. I asked the Client if he had been explained the differences and he said that he had not, he had however been told that the Sovereign Product was better than Asteron! What a joke! The client needs the money and will do as he is told that's simple! For anyone from Sovereign let alone an employee who gets paid regardless,to comment on what an Adviser should be thinking with regard to a no morals unscrupulous competition is nothing short of offensive. Perhaps the giant QFE should have a look at the practices of some of it's Bank Advisers as unfortunately their underhand dealings will eventually impact on the many outstanding Advisers they have as part of their QFE. Or is that what they want? LETS GO DIRECT?
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Now we have "there's not enough happening to grow the market..."
All the things said here about more people trading off the same numbers, someone winning at someone elses expense - that's why your typical adviser despises the banks! Especially when a good client is lost to dubious advice, and inferior products from high-staff-turnover branch banking.