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Customer Focus is Important to Top Insurance Advisors

Last modified: 14 Jan 2013

In the year 2012, a report was created to help advisors and insurers understand the top drivers for the insurance industry. CoreData’s reports listed the 15 most important drivers of satisfaction amongst the Australian insurance advisors and puts customer focus as the most important driver on this list. While referring to this list, the customer focus refers to both the advisor and the client. This report stated that some of the top insurers in Australia that believe in customer focus include TAL, Macquarie and Asteron.


This report placed the competitiveness of cover definitions at least in regards to income covers which comes 2nd in place, far ahead of the ranking of competitive definitions that apply to other personal insurance plans such as TPD plans. In this field, TAP, Asteron and BT were far ahead compared to other insurers.  The ease in which customers can purchase insurance from providers is ranked third in the report. In this field, TAL, Macquarie and Asteron were far ahead than other insurers.


Although the main focus that is customer focus was not changed in its first place from the rankings in the year 2011, the other second and third ranking finishers received higher rankings than what was noticed in the past.


The timelines of receiving commission statements, was placed at the 4th ranking, was declined as a driver of satisfaction from its former ranking as did the competence of the underwriters to communicate decisions in a clear manner, a factor which was now ranked at the thirteenth place.


Other important drivers of advisor satisfaction include but are not limited to quickness in resolving commutation enquiries, online access to sales support, fairness of claims decision and on the last place quickness in claim payouts.


After the results of this report were founded, it was determined that the provider with the highest satisfaction result was TAL. This ended Asteron’s three year consecutive reign of being the most preferred insurance provider in Australia. This report also indicated that Asteron had fallen to the third place while Macquarie was at the second place.


The Head of Advice, Wealth and Super at Core Data, Kristen Turnbull put emphasis on the power of branding in advisor recommendations. She also stated that they find image and reputation are strong drivers when insurance advisors are researching and deciding which insurance companies they want to use.


Another important subject in relation to this report that is equally important to advisors is their understanding of the insurance industry. This report, analysed sources of the income earned by advisors and came to the conclusion that Australia’s financial planners are relying mainly on risk advice for business income. Due to this, insurance advice now totals for 52.8% of all business income. In the year 2010, insurance advice only totalled to 40.4% of all business income and in the year 2011, insurance advice only totalled to 47.1% of all business income. To put it simply it can be said, that the focus of the industry’s advisors has shifted from asset protection to investment advice.


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