Clients still struggling to understand value of advice
Clients obtaining life/risk advice are still struggling to come to terms with the cost of obtaining advice, according to new research released by MetLife.
The research, released today, has found that a disconnect exists between the perceptions of cost and value when it comes to insurance and financial advice.
The findings are contained in the MetLife Adviser-Client Relationship Report 2019 – a quantitative study which covers both consumers and Small to Medium Enterprises.
One of the positives to emerge from the study was that advised Australians were more informed about their insurance than this time last year but, despite this, confusion around the value of expert advice remained.
It said this suggested there was an ongoing need for financial advisers to demonstrate their value by properly educating clients of the benefits and service.
The report said that awareness of what advisers do and what those services should cost was low and that part of the battle for financial advisers was how to make the long term gains to be had from seeking expert advice more tangible in the short term.
“Advisers who are successfully bridging this gap appear to be setting and agreeing on realistic expectations for both clients and advisers in initial meetings,” it said. “Further, they are working closely with their client like a partnership and demonstrating ongoing care and value through simple measures such as annual reviews and contacting clients at important times in their lives, such as buying a house and having a baby.”
Commenting on the report MetLife Australia head of Retail Sales, Matt Lippiatt said the recent spotlight on the financial services industry had caused clients to take a more active interest in the financial products and services they hold and question the value they were getting from these relationships
He said this might explain why Australians know more about their insurance cover this year.
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
