Liz Koh (AFA) has a good article from December on the Stuff website. Worth a look. If I were to add just one thing to her checklist I would add "probability" of risk. Were I permitted two things I would include checking what other resources are available. But this is still a good starting point for a customer looking to understand the basics of what they need to think about before talking to an adviser. Link.
As we enter the traditional planning phase of the year I shall be looking in more detail at the following subjects:
- Corporate activity likely over the coming year
- Financial Advisers Act Review
- Vertically integrated sales channels and their attributes
- The pace of change, and in particular how it affects advisers and clients
- Complexity of consumer financial lives and how it affects planning
- The body of knowledge on risk management and the extent to which its concepts have been adopted in the sale of insurance
Also, looking at current trends and issues we can explore some scenarios and consider some of the likely events for the coming year. Predictions may even be possible. We will, of course, cover more. Your suggestions are welcome - so put through an email.
Henry Stern at Insureblog uses the constant changes in US Healthcare as an example to remind us that there is no substitute for a decent bit of customer engagement, otherwise known as paying attention:
"It's called "Personal Responsibility," and it means paying attention to things like renewal notices and plan changes."
In this piece Rob Stock contrasts getting insurance with advice with purchasing it online and 'being your own adviser'. Link. It would be good to highlight the situations which would make it more likely that advice is the best solution, such as these examples:
- Having a family trust
- Insuring income
- Pre-existing health conditions resulting in a loading
- Multiple families
- Ensuring the payment goes to anyone other than your partner
From goodreturns.Naomi Ballantyne's comments are absolutely right. Put another way, we could probably save a number of hard-pressed advisers from making their own situation worse by better prevention. Link.
TNS recently carried out a survey for Southern Cross Travel Insurance of over 2,000 Kiwis and found that over half of those who had travelledsuffered from some sort of minor illness while overseas. The most common illnesses we cold or flu (19%), travellers' diarrhoea (16%) and travel sickness (12%).
The survey also revealed that 28% of travellers had suffered from sunburn, 20% from insect bites, 10% from cuts/grazes and 3% from broken bones/sprains.
SCTI CEO Craig Morrison says anyone travelling overseas should take the time to prepare a first aid kit that contains but preventative and remedial items. These should include:
- Pain relief – paracetamol or aspirin
- Antacid tablets
- Cold relief capsules
- Throat lozenges
- Motion sickness medicine
- Oral rehydration salts
- Antihistamine tablets or liquid
- Alcohol wipes
- Antiseptic cream/ointment
- Sticking plasters and wound dressings
- Insect repellent
The research figures are backed up by SCTI claims data of which medical claims account for 55% by volume. Other claims include:
- Theft 10.6%
- Loss of an item 6.4%
- Mislaid luggage 5.3%
- Accidental property damage 1.9%
- Rental car damage 1.6%
- Cancellation 1.2%
- Curtailment 3.2%
- Flight delay 8.9%
- Missed connection 2.0%
- Accommodation issues 2.9%
- Other 1.0%
The Quality Product Research database for institutional subscribers will be updated and distributed today.
The Life (and associated lines) Premium Comparison database and Medical Premium Comparison database will all be updated and distributed in the week of 12 January.
For all those product teams still hard at work... take it easy.
The December edition of the Insurance Industry Update can be found here on the Reserve Bank's website.
Chatswood Consulting and Quotemonster office will officially close at midday on the 24th and re-open at 8.30am on the 5th of January 2015. If you have an urgent enquiry about Quotemonster please click the help button on the website. We will be monitoring the help enquiries. Meanwhile we hope that you enjoy a good break.