Adviser knowledge critical to successful risk claims
Specialist risk advisory practice, Australian Financial Risk Management (AFRM), has passed a milestone in dealing with over $100 million in claims since inception in 1997 and has pointed to the value of close relationships with preferred insurers.
At the same time as the advice industry continues to argue over the Life Insurance Framework (LIF), AFRM director, Nick Hatherly reinforced the value of risk advisers having a key role in actively managing all claims and of the advisers having good working relationships with preferred insurers.
Referring to recent reports about insurance companies not paying claims, Hatherly said this highlighted the importance of having a reputable adviser to implement, review, and manage risk insurance needs.
"Good advisers understand insurance contracts inside and out," he said. "They know which policies will give the highest opportunity to make a successful claim. Good advisers will also continue to review policies on a regular basis as clients go through life changes, ensuring their policies remain appropriate to their current needs."
Hatherly said that as specialist risk advisers his business maintained close relationships with its preferred insurers.
"We know the people we will be dealing with when we manage a claim for our clients. We also know that they have a willingness to treat our clients fairly and to do what is right," he said.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
