tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, May 6th, 6:14PM

Insurance

rss
Latest Headlines

Suprising new marketing techniques

Two advisers I know have recently taken the churn debate right into the public domain and uses it as a positive marketing strategy: in almost exactly opposite ways.

Monday, August 17th 2015, 1:09PM

The first talks about ‘sharks’ and highlights the value of retaining policies for the long-term. His business is focused on getting clients to take out enough cover and hold it for a long time. In other parts of his documentation he quotes Asteron Life statistics showing the average age of cancellation of products, and the average age of claim. 

His business is the insurance equivalent of the buy-and-hold strategy to optimise value. Product and insurer selection are given a reasonable focus, but within the context of an overall planning approach which also picks up a wider financial planning and risk management context.

The other adviser talks extensively about product change.

He gives real-world examples of premiums being hiked when policies have been in-force a while and the changing features and benefits. He goes into some detail about different claim scenarios and what is paid when. He compares the likely pay-out amounts and studies the detail of product and provider selection very closely.

His business is the insurance equivalent of the trader – he details the conditions under which he believes a switch should occur and makes it clear to clients that is how he will deliver value to them – by moving them to the new best product.

There’s the switching issue right there for you, uncomfortably present in an adviser value-proposition to clients. Some people would give it another name, perhaps depending on whether they would win or lose in the transaction.

So this highlights the access and advice issue powerfully.

There is a question of whether it is adviser-led or client-led?

I think that the client must at least have something to do with it. The issue is increasing client sophistication: they are used to researching, comparing, selecting, and switching between an increasingly bewildering numbers of options in almost every sphere of consumption, from kitchen benches to mobile telephones. So they expect the same with insurance.

Of course the adviser must have something to do with it as well. If I were an insurer I would want the freedom to deal with both advisers, but I might not want to pay them in quite the same way.

Tags: Asteron Churn Russell Hutchinson

« Robo-advice – The regulator’s choice?Today’s consumer can be hard work »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Tower builds partnerships with CSC and Sentro
Tower Insurance has continued its partnership push announcing it has formed new relationships with CSC Buying Group and InsurTech start-up Sentro.

nib Little Legends $10k Relay gives junior players a healthy funding boost
The nib Little Legends $10k relay, held during half-time at the Blues vs Chiefs match on Saturday, was won by the Pakuranga United Rugby Club.

nib helps protect future rugby stars
nib New Zealand has partnered with the Auckland Blues Super Rugby Aotearoa team to launch its nib Little Legends Little Smiles initiative, giving 1000 junior rugby players OPRO custom-fitted mouthguards – the same ones worn by the professionals.

Insurance professionals get time to shine
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has launched an initiative aimed at showcasing the success of insurance professionals.

News Bites
Latest Comments
  • The death of the single adviser FAP
    “change for the better is good, all for it. but change for the sake of changing is bad. should "consultants / experts" be...”
    10 hours ago by w k
  • The death of the single adviser FAP
    “I am reading the comments and article with interest. Doesn't affect me after 50 years in the industry. Driven by bureaucrats...”
    12 hours ago by LNF
  • The death of the single adviser FAP
    “devil's advocate here The headline implies it to be a bad or intimidating eventuality. So, is the "death" of CERTAIN...”
    13 hours ago by All hat no cattle
  • The death of the single adviser FAP
    “well said, tony and dcwhyte. yup, the arrogance, ignorance .... and tunnel vision "experts" couldn't see the elephant in...”
    13 hours ago by w k
  • The death of the single adviser FAP
    “I don't see anything of this or commented wholly wrong. There are plenty of advisers that I have talked to that have...”
    13 hours ago by JPHale
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com