Removing the stress
Clients who have multiple protection needs often use IFAs so that they are not bogged down with the process of finding the right cover.
That is why Daniel Elkington, chartered financial planner at MT Financial Management, says advisers must make the process as stress-free as possible for clients. It is also why he carries out a mini fact-finding session with clients before going away and doing his research in a bid not to burden or overload clients with information.
Elkington, who is currently studying for a PhD researching professionalism and financial planning at Manchester Metropolitan University, says: “My opinion is, as an independent financial adviser, you’ve got to do the best thing by the client. If that means using several different providers then so be it.
“Personally, I tend to sit down and do underwriting with clients using my laptop, and there is a lot of repetition between different underwriting approaches. I’ve tried using these underwriting portals before, but haven’t found one that works in the way I’d like it to yet.
“What I find to be super effective is to go through a mini underwriting exercise with clients at fact-finding if they want insurance, as you know what most of the questions are and then you can examine the firm’s approach to underwriting those conditions before you apply.”
Help advisers help clients
David Williams, head of group risk at Towergate Health & Protection, argues that providers can also do more to make life easier for financial planners who have clients with complex protection needs.
Williams says that a possible solution to alleviate the current painstaking process is for providers to continually educate advisers on their specific propositions. This is to ensure that IFAs can give the most accurate and appropriate advice to their clients in a complex and overlapping market.
He comments: “There are different protection providers in the market, each offering different products and features. The adviser’s role is to help their client sift through the options and guide them to make the best choice.
"Having a broad knowledge of the provider market and their specific propositions is key here. Recognising which products can help address the client’s needs means better outcomes for those clients and that includes understanding the added-value benefits that often sit behind the insurance products."
Williams adds: “Providers recognise their responsibility to help and generally keep their product range within broad categories, but there are always differentiators and enhancements in them.
"It is important for providers to continually educate advisers on these subtle points to ensure that advisers can give the most accurate and appropriate advice possible to their clients in a complex and overlapping market.”
