What to expect from your insurance adviser
Insurance is serious, and you should receive a professional service, especially when you work with an insurance adviser.
Working with an adviser rather than going direct to an insurer has real benefits, but you need the right fit. Trust and good rapport are essential.
Applying for insurance can take time, and you may need several meetings before your policies are issued. Your adviser’s service shouldn’t end there. Many advisers are keen to sign people up, but real ongoing support can be hard to find. Here is what you should expect.
Regular communication and prompt responses
During the application process (and once your insurance is complete), your adviser should keep the door open for communication and support. For example, if you have questions about your policy, payment, claims or anything insurance related, your adviser should be available to help and respond promptly.
Many advisers also stay in touch through email updates and social media.
Too often, new clients tell us that they haven’t heard from their previous adviser for years. In the worst cases, people are severely under or over insured, leaving them exposed or with cover not relevant to their needs.
Annual reviews
Life happens, things change, and so too do our insurance needs. At a minimum, we check in annually to see if our clients need an insurance review.
You’ll need a review if you’ve had any significant life changes, for example:
- Selling or purchasing a property
- Having a baby
- Ending or starting a marriage or de facto relationship
- Selling or acquiring a business
- Changing from employment to self employment
- Increase or decrease in income
- Changes in health
Regular reviews are also crucial to remove any limitations in your policy, like medical exclusions.
Claim support
Part of the premium you pay to the insurer is paid to the adviser. This is called servicing commission and covers the adviser’s time for annual reviews and claim support.
Yet sometimes, no servicing or support occurs. We often come across clients struggling with claims who have been neglected during what can be a tough time. Some are unable to even contact their adviser when they need to make a claim.
Claims require back and forth with the insurer, forms and specific documents and can be tricky for clients to navigate alone. Your adviser should facilitate the claim and be prepared to go in to bat for you with the insurer if need be.
Professional standards
Advisers must meet specific duties under the Financial Markets Conduct Act 2013 and the Financial Services Legislation Amendment Act 2019.
Anyone giving financial advice in New Zealand must:
- Treat clients fairly
- Act with integrity
- Give suitable financial advice
- Make sure the client understands the advice
- Protect client information
- Have general competence, knowledge and skill
- Have particular competence, knowledge and skill for product advice
- Keep their competence, knowledge and skills up to date
You should expect professionalism, good communication and respect.
How Finsol can help
We stay in touch, review your cover every year and support you through every claim. Call us on 0800 346 765 or book a free consultation.
Finsol is a financial advisory business founded in Hawke’s Bay in 2010, looking after more than 6,000 clients across New Zealand. This article is general information only and does not take your personal circumstances into account.
