Regular client reviews could restore trust in advisers
Regular reviews with financial advisers could build trust and make consumers much more likely to refer their adviser to family and friends, according to the 2018 MetLife Adviser-Client Relationship Report.
The report found that over 86 per cent of people want to be contacted by their financial adviser every year, but only 56 per cent of consumers and 50 per cent of SMEs have actually conducted a review of their life insurance with their adviser in the last 12 months.
Undertaking an annual review increased the Net Promoter Score (NPS) to +30 for consumers and +9 for SMEs, compared to a respective -25 and -20 without a review.
Head of MetLife’s retail sales, Matt Lippiatt, said advisers were missing a trick by not talking to their clients on an annual basis.
“Reviews are crucial to the ongoing relationship, with the NPS results showing they dramatically increase client satisfaction and likelihood to recommend for both consumers and SMEs,” he said.
“This indicates an opportunity for advisers to check in regularly with their clients on their insurances, and to reinforce their value. Advisers have told us doing an annual review leads to increased referrals.”
SMEs in particular have a higher expectation than consumers when it comes to the annual review process, with 41 per cent of SMEs rating their annual review ‘very good’ or ‘excellent’ as opposed to 62 per cent of consumers.
“Overall we found SMEs demand a higher level of service than the consumer group. They are likely to be highly engaged with reviewing their own business on a regular basis, and when it comes to their insurance they are looking for a personalised service from their adviser to fit their individual requirements,” said Lippiatt.
AUTHOR
Anastasia Santoreneos
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.
