|        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, August 3rd, 12:18PM


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



Printable version  


Email to a friend
Insurance Briefs

Flood claims cost almost $45 million
Insurance customers in the Canterbury region lodged 3,538 claims costing over $43.8 million in losses following the May 29 - June 1 floods according to provisional figures released by the Insurance Council of New Zealand (ICNZ).

AIA Vitality partners with Countdown and New Balance
AIA NZ has announced further enhancements to AIA Vitality in the lead up to the second anniversary of its flagship health and wellbeing programme in New Zealand.

ICNZ launches te reo Maori title
The Insurance Council of New Zealand has embraced one of the country's official languages after launching its te reo Maori name - Te Kāhui Inihua o Aotearoa.

EQC offloads disaster claim management to Kiwi insurers
From the end of June, New Zealanders will have a single point of contact for natural disaster claims with the EQC handing over management of claims to eight local insurers.

News Bites
Latest Comments
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  |  Disclaimer
Site by Web Developer and