How financial services can prepare for looming health challenges
CommInsure's Tim Browne says it's time attention was paid to the preparedness of the insurance sector for society's looming health challenges.
Over the last two years the financial advice industry has been subject to a series of reviews. Much time and resources have been spent analysing the industry, debating the ins and outs of adviser remuneration and coming up with various recommendations.
But what about the major issues affecting our industry and nation — for example, those that cost the Government nearly $11 billion in disability benefits last year?
I’m talking about obesity, heart disease, diabetes, mental illness issues, and the other health concerns that are putting our population at risk and often out of work.
The true heritage of our industry is not built on reviews and matters of remuneration, it is built on the clients who we serve and providing peace of mind and security to these individuals in case of illness or injury, and importantly, offering support at claim time.
It strikes me that the Government and regulators often do not understand our industry and the role we play in helping clients.
It is up to us to change this lack of insight and educate these parties on the important role the advice industry plays and highlight the real impact underinsurance is having on our society and nation.
Unfortunately, there is also a huge knowledge gap among Australians as to the health risks they may face in their lifetime and the consequences of not having sufficient insurance in place. Again, advisers have a key role to play as educators.
To this end it’s vital for advisers to be armed with relevant statistics and health information that you can call upon in client conversations, particularly when you’re with clients who simply think illness and injury just won’t happen to them, or clients who only want a minimal sum insured. In such cases, providing cold hard facts can be a real eye opener.
Take me, for example. I’m a 39-year-old non-smoking male. I’m 176cm tall and weigh about 76kg. I consider myself fairly healthy. I lead an active lifestyle including a few games of tennis each week, some golf, plus running around after my three young children (which can be a workout in itself).
However, when I reviewed some stats on a tool called Life Facts Profiler, I discovered that I have a one in three chance of suffering a major medical illness like cancer, heart disease or stroke between the ages of 30 and 64.
The simple fact that I’m a male means I am one and a half times more likely to be diagnosed with cancer than a woman. Additionally, about 50,000 males in my age group suffer a work-related injury or illness.
The report also told me that cardiovascular disease is the leading cause of death in Australia, killing one Australian nearly every 11 minutes.
I learnt that high blood pressure is a major risk factor for heart disease, stroke, heart failure, vascular disease and renal failure in Australians, while also being a leading factor for cardiovascular disease worldwide.
Such statistics can make for powerful conversations with clients.
But in addition to this, it’s important to understand the health issues behind the numbers to discuss specific issues with clients during their fact find or at claim time, and convey a greater understanding of their situation and what they’re going through.
This is part of your role as the trusted adviser.
You might have personal experiences or previous client stories to call upon.
I challenge you to keep abreast of the latest medical advances and learn some of the key statistics that clearly articulate the importance of having adequate personal insurances.
We as an industry also need to ensure our message resonates with the Government and regulators by demonstrating the value of insurance advice in terms of national health issues and our roles in changing people’s lives at their time of greatest need.
Tim Browne is general manager of retail advice at CommInsure.
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