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William Buck says the insurance industry’s sales-driven culture needs to change, following ASIC’s damning review into the sector.
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William Buck calls for insurance change
13 October 2014
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The regulators Life Insurance Advice Review highlighted a record 16.5 per cent lapse rate, something William Buck says in unacceptable.
Sam Kitchen, insurance specialist at the firm said the lapse and failure rates can clearly be linked to insurance advisers who are being paid upfront commissions.
Mr Kitchen said William buck no longer operates under a commission structure and others in the industry should follow suit.
“About five years ago, the company introduced an ongoing service model involving regular progress meetings with clients to ensure the client comes first in all of the decisions that are made. The low lapse rate for the firm can be attributed to the ongoing service model.”
Mr Kitchen said William Buck spend considerable time at the beginning of the client relationship to understand the client’s circumstances to ensure the right strategy is put in place that best services their requirements.
“Higher debt levels and cost of living pressure means that life insurance has never been more important, however clients are finding it challenging to find the funds to pay for insurance premiums.”
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“The firm is focused on long-term relationships with clients which is a philosophy that carries across all service areas within the business. Many clients have been with the company for over a decade. Client needs change as they move through the lifecycle. Insurance advice should reflect these changes.”
“Insurance is a very complex area and needs to be treated accordingly. Advice should be specifically tailored to the requirements of the individual. The client must always come first,” Mr Kitchen said.
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