WP TV brings you closer to the industry's most influential leaders and thinkers. Click on the videos below to watch the interviews:

Showing 19 - 27 of 27

White Paper begins tackling underinsurance issue

With the release of it's new White Paper; 'The Value of Protection', the AFA has partnered with BT to first try to understand and then ultimately address negative perceptions of the life insurance claims process. Brad Fox, AFA CEO, believes that this white paper is vital in beginning to rectify Australia's huge underinsurance problem. 

Video transcript below:

Anna Temple, Wealth Professional Online
Anna Temple:
 With the release of its new white paper last week, “The Value of Protection”, the AFA has partnered with BT to first try to understand and then ultimately address negative perceptions of the Life Insurance claims process.  Brad Fox, AFA’s  CEO,  believes that this white paper is vital in beginning to rectify Australia’s huge underinsurance problem.

Brad Fox, CEO, AFA
Brad Fox:  For a number of years now the AFA have been doing white papers and we think it’s an important part that we need to play in thought leadership.  This particular one is in an area that hasn’t been studied or examined before in Australia and that’s around claims.  One of the reasons we have wanted to tackle this, is that the underinsurance problem in Australia is of enormous proportions and not much has changed in the amount of underinsurance for a number of years, particularly relating to income protection.  There are new answers in here that we thought, were worth testing.
Anna Temple:  The AFA firstly discovered that there is a considerable gap between the consumers expected claims journey, normally a time consuming and adversarial one and their actual experience.  Fox believes advisors have two roles, to emphasise the many positives of the claims process, when suggesting Life Insurance to a client and then to facilitate a relationship between the client and claims manager, if and when a claim is made. 
Brod Fox:  One of things that we found and this was, this is now irrefutable, is that there is a large gap in expectations between what people expect to experience in a claims event versus the actual experience when they claim.  So if I simplify that, there is a lot people not buying insurance, Income Protection Insurance because they expect the claim process to be too difficult.  They expect the amount of paper work, they expect the interaction to be far too hard to deal with.  They expect that it would be an adversarial relationship with the Insurer to try and get the money.  What we found when we talk to people that had been through claims is that wasn’t the case at all.  In fact the client’s experience was a positive one and there are implications here at all levels across the industry whether we talk about  advisors, whether we talk about product providers or consumers.  From the consumer point of view we need to debunk this myth that Insurance is all bad news.  We need to get a message to them that, when you buy the promise, when you buy that promise of an Insurance contract, you will be paid out at claim time.  We need to get the advisors to make sure that how they showcase the claims process at the time of dealing with the client, to get them to take up Insurance, it’s a positive experience.  Not that they are there to work with the Insured against the Insurer to get the money because the evidence is the insured does get the money.  So, it’s therefore about how they help provide a holistic claims experience by getting a relationship going between a claims manager and the Insured.
Anna Temple:  Finally, Fox says  the implications of this paper  are broad and far reaching, although this is just tip of the iceberg, with calls for an industrywide bench marking study sure to follow. However, it is definitely clear that a holistic support  approach to the claims process, with advisors collaborating with both parties as early as possible is in everyone’s best interest.
Brad Fox:  Insurance claims that take a long time where there is a benefit paid for more than six months, we have a rapid escalation in the likelihood that person won’t return to work or will be a very long income protection claim.  So early intervention on a holistic approach basis has the probability of shortening claims.  Now that’s a great outcome for the Insurer financially, but more importantly it’s a great outcome for the consumer.  They want to return to work, you want to be valued, you don’t want to be stuck at home, you don’t want something like a physical injury to become a mental health claim, because of the loss of sense of self worth, the difficulty of adjusting to a new life, the way you change the perception of your friends and your family.  So this early intervention from a holistic approach and it takes emotional intelligence in the claims process to do it, has a win win for everybody.
Anna Temple:  This is Anna Temple reporting for Wealth Professional Online.
  • Aged care advice in demand Aged care advice in demand (views 8407)

    Australia's population is ageing and with that comes a need for good advice. We speak to aged care specialist Brendan Ryan of Macquarie Bank about his area of expertise.

  • Invaluable client advice as budget looms Invaluable client advice as budget looms (views 7726)

    Financial planners are in overdrive as clients look for advice ahead of May's Federal Government budget. We speak to Andrew Zbik of Omniwealth on preparing for expected changes to superannuation.

  •  ASIC answers all of your FoFA questions ASIC answers all of your FoFA questions (views 9006)

    ASIC Commissioner Peter Kell talks to Wealth Professional journalist Donna Sawyer about FoFA and what you need to know about acting in your clients' best interest

  • Summer Series: Perfect your account management strategy Summer Series: Perfect your account management strategy (views 6000)

    Now is the time to get your sales and account management strategy in place for the year ahead. We speak to Doug Mathlin of FrontRunner Consulting Group for his top tips on getting it right.

  • How to be a wealth winner in 2013 How to be a wealth winner in 2013 (views 7669)

    It's been an eventful year for financial planners - and it's just a taste of what's to come. We speak to Mark Ballantyne of Financial Wisdom and Andrew Rocks of Announcer for their thoughts on the challenges you'll face in 2013 and how to come out on top.

  • Finance sector struggles to shake off 'man's world' image Finance sector struggles to shake off 'man's world' image (views 6847)

    The latest eFinancialCareers survey has found nearly two-thirds of the industry believe gender discrimination exists in the workplace - but is it a perception problem? We speak to George McFerran of eFinancialCareers and Nareen Young of Diversity Council Australia for their thoughts on workplace diversity.

  • How to sell your business How to sell your business (views 7258)

    The financial planning industry is gearing up for a mass exodus ahead of FoFA - but there are a few things you need to know if you're selling your business. We speak to Mike Stewart of Radar Results and Anthony Hunt of Hunts' Group for the dos and don'ts of the sale process.

  • Platforms weigh in on opt-in debate Platforms weigh in on opt-in debate (views 8737)

    Platforms move to lobby Canberra as consultation begins on opt-in. We speak to Connie Mckeage of OneVue and Kelly Power of BT for their thoughts on the proposed regulations and what planners can do to prepare for implementation.