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: Friday, July 10th, 4:12PM

Insurance

rss
Latest Headlines

They don’t start out caring, making them care is our job

To protect clients from whatever future events may happen we must start with hard questions – and a polite determination to get to proper answers.

Monday, March 13th 2017, 6:00AM

Consumers do not form an orderly queue at the door asking for policies. It is true that there is some latent demand, the ‘ready to buy’ consumer. They do exist, but not in great numbers. Google is the great beneficiary of the fierce competition to catch them: bidding up the price of adwords for terms related to ‘insurance’ to sometimes eye-watering levels. So yes, some of them care, but most consumers don’t care that much. In fact, until someone has a goal, they couldn’t care less about most things.

Consumers can lack interest all morning until lunchtime and, once fed, drift along not thinking big original thoughts about anything all afternoon. But don’t take it personally, it’s an equal opportunity apathy applied to everything from homelessness, to healthcare, racism to global warming. Driven, focused people are the exception, not the norm. Rare indeed is the consumer that can sustain a deep and abiding interest in insurance.

Think about it. It would be weird to meet one.

So we should not be surprised consumers are apathetic. Waiting for consumers to overcome their apathy about insurance and you will go broke, and they won’t get cover. Two bad outcomes, but only one side of the equation is going to change it.

In Australia a survey found that more than 80% of advisers rate consumer apathy to be the biggest problem they face. It’s a dumb question because you could re-phrase it thus: “Is how much the consumer wants to buy the biggest issue in sales?”

It is our job to make them care. Typically this is done by asking hard questions. “What happens if…?”

When the answer is evasion, politely and persistently ask again.

When the answer is unrealistic, point that out, and ask again.

Waiting, creating a safe but determined space for the truth to emerge. “If my partner died I would need…” or “If I couldn’t work, to keep the house I would need…” and so on.

When we have a realistic statement of what people want to happen should disaster strike – and over a lifetime, in a family or a business, it nearly always does – then we can start to talk about solving the problem, making sure the money will be there. But it starts with hard questions and the polite determination to get to proper answers.
 

Tags: Russell Hutchinson

« Is that really advice?Lack of data hinders good debate on disclosure rules »

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

Less stressed during lockdown
New Zealander’s health and wellbeing had surprising benefits from the Covid-19 lockdown.

Southern Cross supports new safe haven for at-risk pets
Southern Cross Pet Insurance has teamed up with Pet Refuge to provide temporary shelter for animals affected by family violence.

nib Foundation supports Lifeline to the tune of $150,000
To support the growing mental health needs of Kiwis emerging from the Covid-19 pandemic, Lifeline Aotearoa has increased its service capacity thanks to a $150,000 grant from nib foundation, the charitable arm of nib New Zealand (nib).

Southern Cross halves staff numbers
Southern Cross Travel Insurance is slashing its staff numbers from 90 to 45 people.

News Bites
Latest Comments
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    2 hours ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    8 hours ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    9 hours ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    1 day ago by LNF
  • Commission disclosure: What's material?
    “The consumer should know that there is at times large amounts of comission involved but it has to be balanced with not confusing...”
    1 day ago by Good Hamish
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