{"id":82,"date":"2016-03-18T10:32:46","date_gmt":"2016-03-18T00:32:46","guid":{"rendered":"http:\/\/magazine.riskinfo.com.au\/24\/?p=82"},"modified":"2016-03-29T14:39:29","modified_gmt":"2016-03-29T04:39:29","slug":"2016-aiamdrt-experience-hong-kong-round-table","status":"publish","type":"post","link":"http:\/\/magazine.riskinfo.com.au\/24\/2016-aiamdrt-experience-hong-kong-round-table\/","title":{"rendered":"2016 AIA\/MDRT Experience Hong Kong Round Table"},"content":{"rendered":"<div class=\"fw feature2\">\n<h3>The AIA\/MDRT Experience Round Table in Hong Kong at the end of January strongly reinforced what appears to be a global trend of positioning the needs and wellbeing of the client at the centre of all life insurance advice conversations.<\/h3>\n<\/div>\n<div class=\"instoryYoutube\"><iframe width=\"745\" src=\"https:\/\/www.youtube.com\/embed\/yY_FGHalX9Y?rel=0;showinfo=0\" frameborder=\"0\" allowfullscreen><\/iframe><\/div>\n<p>We learned that historical events, changing compliance standards, emerging technology and the growth of consumerism have all contributed to shaping a universal life insurance advice environment that transcends borders and individual jurisdictions.<\/p>\n<p>Round Table panelists included experienced advisers and stakeholders from both Australia and Hong Kong, who exchanged their thoughts and shared their experiences in considering issues including:<\/p>\n<ul>\n<li>The nature of life insurance advice<\/li>\n<li>The evolving role of the risk-focused agent\/adviser<\/li>\n<li>Compliance and regulation requirements, both current and future<\/li>\n<li>Adviser\/agent education and training<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-01.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><br \/>\n<b>Panelists (L to R)<\/b><\/p>\n<ul>\n<li><b>Elise Sanders<\/b> &#8211; AIA Australia SA State Manager<\/li>\n<li><b>Michael Grammatico<\/b> \u2013 MDRT member, Director, Innovative Financial Solutions<\/li>\n<li><b>Susan Paterson<\/b> &#8211; MDRT Australia Immediate Past Chair, CEO Business Insurance Group<\/li>\n<li><b>Joe Cheng<\/b> \u2013 CEO, Group Agency Distribution, AIA<\/li>\n<li><b>Red Wong<\/b> \u2013 AIA Hong Kong District Director<\/li>\n<li><b>Peter Sobels<\/b> \u2013 Publisher, Riskinfo<\/li>\n<li>Inset &#8211; <b>Vicki Writer<\/b> \u2013 Founder, 360\u25e6Solution (main platform presenter at 2016 MDRT Experience)<\/li>\n<\/ul>\n<p><b>Innovation<\/b><\/p>\n<p>AIA Australia SA State Manager, Elise Sanders, spoke of the challenges often associated with being \u2018first to market\u2019 with new consumer initiatives: \u201cIt\u2019s really important to have innovation. But innovation means leading edge and sometimes you really don\u2019t know whether the initiative will work until you\u2019ve launched it into the market.\u201d<\/p>\n<p>Hong Kong-based <b>Joe Cheng, <\/b>AIA Global\u2019s CEO Group Agency Distribution, observed that the product development process is different today\u2019s consumer focused world. Using the Hong Kong market as an example, he noted that when it came to innovation there was a \u2018product centric\u2019 kind of process that existed until 10 \u2013 15 years ago. \u201cBut now there is a more customer centric approach,\u201d said Joe. \u201cWe have a process that involves getting feedback from the agency front line, from the customer, from our agency research, which includes research on different consumer ages, life stages and life styles, and also by making reference to competitor products.<\/p>\n<p>Joe continued that innovative products can also be driven by external environments such as interest rate levels. While the process of innovation is driven by multiple factors, each proposed initiative has gone through a consultation process, through research and development, through customer focus groups and by also benchmarking industry competitors.<\/p>\n<p>\u201cIt\u2019s a safer way. It doesn\u2019t guarantee success but minimises the risk, said Cheng, \u201c\u2026and gets you closer to what you were expecting.\u201d<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p><b>The structure and regulatory environment for life agents in Asia<\/b><\/p>\n<p>In a region where the regulatory environment is very different to that which exists in Australia, Cheng outlined the products and training available to agents retained in Asia by AIA Global, who \u201c\u2026have a full range of products available for them to use to service their clients\u2019 needs.\u201d He also noted that for some products, agents must go through internal competency testing before they are allowed to have access. \u201cIf they don\u2019t pass the test they are not allowed to sell that product.\u201d<\/p>\n<p>He told the panel there exists an internal company competency test, for different types of products. \u201cThe adviser must have special knowledge \u2013 must acquire special knowledge, before they can use that product,\u201d said Cheng.<\/p>\n<p>In outlining details of the (self-regulated) internal education and training provided to AIA agents in Asia, Cheng emphasised this was only possible once the individual has been able to sit and pass a licensing exam set by the government regulators in almost all Asian countries. \u201cYou have to pass that test before you can become licensed to sell \u2013 testing which includes the principles of life insurance, compliance etc.\u201d<\/p>\n<p>In stark contrast to what is now the case in the Australian market, Cheng said all new AIA agents received extensive company training, which he says \u201c\u2026adds another layer over the licensing exam standard, in which it double emphasises on the compliance issues contained in the licensing exams.\u201d In addition to this added layer of training, Cheng said a growing number of Asian countries also require their agents to undertake regular CPD points activity requirements. For those countries which are yet to make CPD points compulsory, Cheng says AIA requires an equivalent level of learning activity from its agents in those countries in order to ensure a minimum standard of sometimes self-regulated compliance applies to all AIA agents in Asia.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-02.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p><b>What is the role of a risk-focused adviser, both today and tomorrow?<\/b><\/p>\n<p>Considering the role of risk-focused advisers, Queensland adviser and Australian MDRT Immediate Past Chair, Susan Paterson, said that delivering professional advice today, just like the legal and accounting professions, is very much a specialist field. \u201c\u2026so you\u2019re probably going to find that the [life insurance] advice you get is better coming from a risk specialist than a generalist financial planner.\u201d Susan continued, \u201cSimply, if you\u2019re not working at a job all the time, you\u2019re just not going to be as good at that job as someone who is. For that reason I think there is very much a role for the risk specialist adviser, both today and into the future, which is very focused on that part of the advice market.\u201d<\/p>\n<p>Paterson gave an example from Canada, where she said some advisers specialise only in providing trauma insurance advice solutions. \u201cThat\u2019s more difficult to achieve in Australia because of how we\u2019re currently structured, she said, but used this as an example of where, if the regulatory environment was favourable, niche specialisation was possible. \u201cBut I think the other thing that is brought to the table by the specialist is the value they add at time of claim,\u201d she said. \u201cRisk specialists have a much greater appreciation of product definitions and the general entitlements of the client when it comes to applying for a claim \u2013 the time when a client needs the adviser the most.\u201d<\/p>\n<blockquote><p>the role of the risk specialist adviser is going to change over time<\/p><\/blockquote>\n<p>360\u25e6 Solution Founder, Vicki Writer, who presented on the main platform at the MDRT Experience later on the day the Round Table was conducted, agreed with Paterson about specialisation. She said the way she sees a risk adviser at the moment is as a specialist \u2013 an adviser who provides risk mediation strategies, and she also agreed about the value they add at claim time. \u201cBut in addition to all of that, I think the role of the risk specialist adviser is going to change over time,\u201d said Writer. She says she believes risk focused advisers should consider a more holistic service offering &#8211; not around providing investment advice, \u201c\u2026but there\u2019s a whole other conversation that could potentially be added on to that risk advice component, which is around health and lifestyle,\u201d she said. \u201cThere\u2019s a whole range of other areas that the risk-focused adviser will need to be across in future \u2013 not necessarily as a specialist but as a facilitator of those additional value-added services, and have referral partners in place, to whom the client can be directed to have those needs gaps serviced.\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-07.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p>Sanders also agreed with her fellow panelists: \u201cYou don\u2019t want to generalise what a risk adviser looks like, because you have some advice practices which have multiple risk advisers and administrators who deliver a different solution to that of a sole trader or a single partnership practice. I agree with Vicki about where we\u2019re going with our industry. Risk specialist advisers can still maintain what they\u2019re doing today but strategies around a client\u2019s \u2018lifestyle\u2019 will become more important, where the adviser isn\u2019t just talking about the \u2018insurance piece\u2019 but also has a strategy that delivers additional value, particularly if the adviser is unable to place the insurance component of the advice service.\u201d<\/p>\n<p>Experienced Queensland adviser and practice co-owner, <b>Michael Grammatico<\/b>, told the panelists his business (Innovative Financial Solutions) is a full service advice practice. \u201cI do come from a risk advice background but love what Vicki has said about providing a more whole person advice service. We\u2019re very much a \u2018goals-based\u2019 financial planning practice,\u201d said Michael, noting the way that financial advice has evolved over time. \u201cHistorically we\u2019ve been a sales-based industry, but we\u2019ve moved from being product-centric to client-centric. We are now very much a service-based industry, according to Michael.<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Indicative for Michael of how the risk advice sector has matured, he told the panel his business doesn\u2019t just consider the protection or investment needs of a client but rather they address their complete circumstances, including lifestyle needs, goals and objectives. \u201cSo we\u2019re addressing not just their life insurance needs but their life stage and lifestyle needs as well.\u201d<\/p>\n<p>When questioned, Grammatico strongly agreed that his business, within an industry that has already moved from a product-based perspective to a client based perspective, will continue to move in line with the future articulated by Vicki Writer, in terms of serving the broader life and lifestyle wants needs of the client. He pointed to the AIA Vitality program and the MLC Best Doctors initiative as examples of this enhanced service proposition.<\/p>\n<p>Grammatico told the panel he believes these programs are extremely beneficial to the consumer, but felt the consumer doesn\u2019t know enough about them. He suggested the product manufacturers conduct more direct marketing to the public \u201c\u2026so that way the consumers are then coming to us and requesting these services,\u201d he said.<\/p>\n<p>Red Wong has been a Hong Kong-based AIA agent for 26 years and is now a District Agency Director with the company. She commenced with AIA direct from college into an internship program, telling her peers that she has experienced one career with a single company (not unusual in South East Asia, but extremely unusual in Australia, and almost impossible within the Australian financial services sector).<\/p>\n<p>Red was asked about what the notion of being a life insurance agent means to her, and whether she believes her role will change or evolve in the future.<\/p>\n<blockquote><p>People are beginning to think about their long term protection and savings whereas they previously did not<\/p><\/blockquote>\n<p>\u201cI have witnessed my own transition from being a life insurance agent to being a financial planner nowadays,\u201d said Red. She was part of the first intake of advisers who undertook the CFP program in Hong Kong (a program from Australia), around 1999\/2000. She said a financial planner \u2018depression\u2019 in Hong Kong in 1996 was the catalyst for AIA to resolve it would become a one-stop service for all clients, rather than focus only on life insurance services.<\/p>\n<p>\u201cSo we now have a financial planner division where the educational background for new advisers requires a Bachelor degree or above. And existing advisers are assigned to special training programs where we learn how to provide a one-stop service to consumers \u2013 to our clients.\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-03.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p>Red outlined how the Asian financial \u2018tsunami\u2019 in 1997 changed the Hong Kong and Asian advice environment. She said the 1997 crash \u201c\u2026actually helped us to refine our services and take new directions. Then at the end of 2000, mandatory pension fund schemes were introduced. The challenge we faced was how to transform from an insurance agency to an all-round financial services provider.\u201d<\/p>\n<p>Red challenges all new AIA agents about whether they view themselves as life insurance agents or financial planners. \u201cThis is the question we face,\u201d said Red, who spoke with great pride and confidence about what she sees as AIA\u2019s full range of services that it can offer today\u2019s consumers, designed to cater to both life insurance as well as broad-based financial planning needs and wealth management solutions.<\/p>\n<p>Red rates Hong Kong as a reasonably mature market in which the penetration of life insurance and financial advice is fairly high. \u201cOne consumer may have access to a dozen planners,\u201d said Red, \u201c\u2026so we must distinguish ourselves &#8211; we must demonstrate how we provide value.\u201d<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>She confirmed there were about 32,000 financial planners operating in the Hong Kong market, serving a population of just over 7 million.<\/p>\n<p>In an amazing sign of changing consumer behaviours in the Hong Kong market, Red related that when she first started making prospecting calls she secured on average one appointment out of one hundred calls. But today for new advisers, their success rate is around one appointment from seven or eight calls.<\/p>\n<p>Red says it is the environment that has changed \u2013 peoples\u2019 attitudes. \u201cI can\u2019t say they often come to us directly,\u201d said Red, \u201cBut when you approach them, people say \u2018fine, I can meet with you\u2019. They make no promises as a client but are happy to receive additional planning suggestions from advisers.\u201d<\/p>\n<p>She said insurance was highly \u2018taken up\u2019 in Hong Kong and that consumers may also have more than one adviser. She told the panel that when she and her agency peers contact prospective clients today, they seek simply to understand who they are and what they want. \u201cIt\u2019s not a product conversation anymore,\u201d she said, \u201c\u2026but rather a service-based approach that assists in differentiating us from our competitors. We talk to the client about their short term and long term goals and dreams.\u201d<\/p>\n<p>Red continued \u201cOnce I\u2019ve analysed the client\u2019s circumstances, if I find gaps, I ask, \u2018\u2026if you will allow me, I will propose the solution\u2019\u201d.<\/p>\n<p>In working on MDRT committees with peers from Hong Kong, Singapore and China, Susan Paterson shared with the panel the strong impression she gained from listening to them speak of how they consider their clients to be clients for life and, unlike the Australian environment, if that client said they were going to move from an AIA product to (say) a Perpetual product, \u201c\u2026this would be like a knife in the heart of the adviser \u2013 devastating,\u201d said Paterson. This highlighted one of the significant differences that exist between Australian financial advisers and their peers who operate in Hong Kong and most of Asia. In Asia, company loyalty for agents means everything. Their loyalty is extremely strong. All of their training and information comes to them from the company who retains their services as agents and advisers. Also observing the lower lapse rates that occur in Asian markets, Susan commented this environment was \u201c\u2026so totally different to what we experience in Australia \u2013 the extent of company loyalty.\u201d<\/p>\n<p>Joe Cheng took up Red\u2019s observation about client call prospecting conversions as an important example of the impact of a changing advice environment. \u201cWe have to look at it from a macro point of view. In the last ten years the Asian GDP growth and resulting protection gap has become so enormous that it has impacted attitudes already. Second is the ongoing volatility in Asian markets like Hong Kong. People are beginning to think about their long term protection and savings whereas they previously did not,\u201d he said.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-04.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p>Cheng highlighted two other critical initiatives\/events that have raised overall financial awareness of the Hong Kong public. The first of these has been health care reform. Strategies and initiatives in the 1980s, 1990s and more recently have had the effect of raising health care and protection in the mind of the population; including the introduction of Mandatory Pension Funds (compulsory savings plans).<\/p>\n<blockquote><p>the focus is always about the client; not the product. It\u2019s become more about the client\u2019s well-being than how much life insurance they need<\/p><\/blockquote>\n<p>The second key issue, according to Cheng, has been the strong emergence of the middle class. \u201cWhen they have their shelter and their wealth,\u201d he said, \u201c\u2026they then think about their protection. They can find all this information about insurance from the Internet. They\u2019ve got all the knowledge. And sometimes their knowledge is even better than our own financial planners. So, when the AIA agent sees the client they must be well equipped, otherwise the client will ask the questions they sometimes don\u2019t even know the answer to!\u201d<\/p>\n<p>According to Cheng, these developments \u2013 Asian GDP growth and the widening protection gap, health care awareness, internet access and consumer knowledge have all shaped the changes in the consumer market that have led to a conversion rate from 1:100 in Red\u2019s earlier days as an agent to 17:100 today.<\/p>\n<p>\u201cThe customer wants to see you today because they want to know more and to decide which company and which financial planner best suits them. Today, tools such AIA\u2019s financial health check are the best tools that will help an agent retain a client for life because the focus is always about the client; not the product. It\u2019s become more about the client\u2019s well-being than how much life insurance they need.\u201d<\/p>\n<p><b>Adviser\/agent education and training<\/b><\/p>\n<p>On the topic of future minimum mandated education and training for agents and advisers, Paterson commented that education is \u2018front of mind\u2019 in Australia at the moment. \u201cI think tertiary education is extremely important but I don\u2019t think we should lose sight of the interpersonal, client interaction skill sets. The most important thing is to approach the client with engagement and understanding,\u201d said Paterson. \u201cBut my concern is that while the adviser may have a degree &#8211; if they\u2019re not approaching the client with that training and perspective then I don\u2019t think we\u2019re giving consumers the best outcomes. \u201cWisdom and experience really do count for a lot,\u201d she said.<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Paterson pointed to the training AIA provides in Hong Kong and Asia \u2013 training that, while the adviser must hold a degree to deliver financial advice, she said is always built around the consumer. \u201cLife insurance companies in Australia are becoming more and more removed from that role. Years ago, life insurance companies played a major role in the delivery of training, but this has lessened, together with the availability of resources for advisers held by life companies and some dealer groups. My concern is where advisers will access this knowledge in future,\u201d she said. \u201cMDRT is a great part of helping advisers relate with and serve their clients, but will that be enough in future?\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-08.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p>Continuing this conversation, Grammatico was asked what was more important from the point of view of the client \u2013 the adviser\u2019s empathy and understanding or their product knowledge and qualifications. He responded by highlighting the Australian Association of Financial Advisers Genxt program, in which he was involved in building. \u201cThe reason we launched is because we identified a growing knowledge gap in advisers from a \u2018soft skills\u2019 perspective. A lot of older advisers who hadn\u2019t done tertiary qualifications were\u00a0 so proficient from a \u2018sales\u2019 or \u2018soft skills\u2019 perspective, but we were also seeing how education and\u00a0 tertiary qualifications were becoming more important in the eyes of the regulators than the soft skills. Unqualified advisers were walking away from the industry and their soft skills knowledge was walking with them. So this program helped to drag them and their knowledge back to newer advisers in a mentoring\/aspirant capacity.\u201d<\/p>\n<p>Grammatico continued, \u201cThere are two different ways of looking at this. If you\u2019re going to be a risk specialist adviser, for which I believe there is a market in Australia, should there be a requirement for that risk specialist adviser to have CFP qualifications or a Master\u2019s Degree in Financial Planning? I don\u2019t think so, because the skill sets that are needed to be a successful risk specialist adviser are completely different from those required for \u2018full service\u2019 or \u2018holistic\u2019 advisers, where it is a necessity to hold those formal qualifications.\u201d<\/p>\n<p>He also gave his vote of support for an annual proficiency examination or test to ensure continuing knowledge and competencies.<\/p>\n<p>But reiterating how important the soft skills are and that \u201c\u2026we don\u2019t want these experienced advisers walking out of the industry and taking all that knowledge with them, Grammatico said \u201cI could be the most technically proficient adviser that has ever graduated. But without the knowledge about how to build relationships &#8211; all that technical knowledge counts for nothing.\u201d<\/p>\n<p>Handing over to Red for her perspective on what\u2019s more important \u2013 the fact of her degree or her understanding of how she can help clients: \u201cI agree with Susan &#8211; we need many skill sets.\u201d Red described three types of AIA agents who operate in Hong Kong:<\/p>\n<ol>\n<li>The new ones. Most have degree or Master\u2019s Degree (not mandated). But we have an academy for those who have at least a degree or have some work experience. We recruit these high quality people.<\/li>\n<li>Experienced advisers who can continue to grow and learn. I now also have a degree. And I can change to reflect those new challenges.<\/li>\n<li>Experienced but gradually fading out of the market.<\/li>\n<\/ol>\n<p>When Red commenced her career, the Hong Kong economy was different and the consumer was generally less educated. \u201cBut that has changed,\u201d she said, \u201c\u2026and so has the approach by advisers and the way in which they add value. \u201cToday, sometimes I can say that we are \u2018life event planners\u2019 \u2013 not just protection or wealth management agents. If you build real relationships with clients they will even call you to tell you about their sadnesses,\u201d said Red.<\/p>\n<p>Vicki Writer also agreed with Grammatico\u2019s view about mandating different minimum educational qualifications: \u201c\u2026future requirements to make existing risk specialist advisers obtain a degree would be \u2018over the top\u2019. My fear is that this will be imposed and we will lose a significant number of first class risk specialists.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-05.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p>Writer advocates her proprietary seven-stage process, where financial services advice is only one component of a broader, holistic lifestyle service proposition. \u201cAdvisers can take on that program and roll it out as a service proposition but don\u2019t need to be formally qualified to do that. All they would need to do would be to set up an alliance with a qualified financial planner who has the degree qualifications required,\u2019 she said. \u201cBut the original adviser stays at the centre with the client as the facilitator of all the services and value adds.\u201d<\/p>\n<p>Sanders considered the natural evolution of two issues: \u201c\u2026one is social education around the globe, where all children are stepping up or looking to step up to higher levels of education, just to get a job in the first place. That is an issue in itself, first and foremost,\u201d she said. \u201cThe second piece is looking at the evolution of our industry over time. I came in with CLERPS (Corporate Law Economic Reform Program Act 2004) and then FSR (Financial Services Reform Act) came through and each time there has been a higher benchmark level to which the industry has been held accountable around education. My concern is that tertiary education does not teach compassion or empathy,\u201d she said.<\/p>\n<p>Sanders accepts the consumer is also demanding those higher levels of education because of the controversies of the past. \u201cDo I think this is justified? Yes. Probably not for the risk focused adviser, but all advisers are being swept up in the natural evolution of industry change and the educational reforms that go with it.<\/p>\n<p>Grammatico was very matter-of-fact on the issue of learning empathy and interpersonal skills: \u201cLearning from a book just doesn\u2019t cut it,\u201d he said. Sanders agreed: \u201cIt\u2019s all about learning on the job,\u201d she said, which also reflected Red\u2019s earlier comments about her own evolution as an adviser.<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>In stating that AIA will mostly recruit degree qualified new entrants in future, Joe Cheng also told the panel AIA still allocates an intake for new agents who do not have a degree \u2013 those with particular interpersonal skills which can deliver great value and service for segments of the AIA consumer target market. Joe said the future world will be technology driven and that regulatory control will be tightened \u2013 even more than it is today \u201c\u2026and all these regulations and technology trends will demand the adviser has the ability to learn fast and is more adaptive to change. And for those who have the discipline to study for and achieve a degree it means they will find it easier to survive in a highly regulated environment. \u201cSo, why do we still hire people with a non-university degree? Because there are particular client segments that require a specialised approach which has little to do with formal education. These include a growing number of millionaires and billionaires in Hong Kong and China. The relationship is built on long term trust and it takes the right kind of people to talk to them,\u201d he said..<\/p>\n<p>Cheng told the panel he believed their discussion had achieved a general moral consensus. \u201cWhen I talk to the new agents I talk about belief \u2013 the belief that we can create dreams for our customers and make that dream come true. And the second part is core values. As insurance professionals we share, we give and we help. We talk about behavior. We also talk about knowledge, skills, habit and attitude \u2013 and then the results will come. That\u2019s why at AIA we strongly promote the culture of MDRT. MDRT is not about personal success. It\u2019s about helping each other and serving each other and helping each other to grow on a long-term basis.\u201d<\/p>\n<p>Cheng argues there is a basic, underlying moral obligation that must be present in the character of every financial adviser before they can genuinely serve their clients. (This reflects Sander\u2019s suggestion that all future advisers should be required to undertake interpersonal and empathy training and testing.) He says agents can have all their qualifications and PowerPoint slides, but without a very basic education involving morality, belief and core values, he believes the agent or adviser will not properly serve the needs of their clients.<\/p>\n<p>He told the panel that the South East Asian market continues to evolve, citing recent regulation in Singapore as an example where adviser remuneration will be based in part on a set of non-sales key performance indicators. \u201cSo, things are evolving in South East Asia,\u201d he said. \u201cBut at the end of the day, if you see your client as a partner \u2013 as a life-time friend, you will do nothing to harm her, him or their family, because of the core values underpinning your service.\u201d<\/p>\n<p>He also nominated the AIA Vitality program, which has been roiled out in a number of countries including Australia as a \u2018game changer\u2019: \u201c\u2026traditionally we sell insurance. If you have a claim, come to me and I will help you to my utmost best effort. But now,\u201d said Cheng, \u201c\u2026we have introduced a concept, where \u2026 we\u2019re now selling you the concept of wellness, exercise, health foods, healthy living, health diets and medical checks. All these things. If you earn enough points, you will earn a discount with some of our products. And that is not the end of the story,\u201d he continued. \u201cYou have to continuously earn your discount by executing all the lifestyle values we have just mentioned. It shows we\u2019re concerned about your health.\u201d<\/p>\n<p>By linking the Vitality program with life insurance advice services, Cheng said this leads to longer-term relationships. \u201cI am your Vitality partner \u2013 it introduces you to a range of tools to help you improve your health. You learn about your health, you improve your health and then you enjoy it,\u201d he argued. \u201cSo this is a complete game changer to selling insurance, and the same can be introduced into the client\u2019s family. It will take time for our front line agency to adopt and for our clients to interpret. But we believe that this will help us to create a strong bonding with the client.\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/2128152\/riskinfo\/eMag\/24\/articles\/feature1-06.jpg\" alt=\"\" width=\"1200\" height=\"680\" \/><\/p>\n<p>Sanders agreed: \u201cThere\u2019s no point in saying to advisers that you need to go through all these regulatory changes to become client centric and then just sit back as a life insurance company and offer no support,\u201d she said. \u201cIt\u2019s really important that life companies, dealerships and advisers sit down and actually tackle those issues together and find opportunities for advisers to enhance their services, such as access to the Vitality program. It\u2019s really critical that as an insurer we start to partner with advisers in a manner which delivers business efficiencies and support for them.\u201d\u201d<\/p>\n<p><b>Final comments<\/b><\/p>\n<p><b>Red Wong<\/b>\u2013 Red said it was \u201c\u2026an honour to have had the opportunity to discuss both the similarities and the differences between our markets.\u201d She said the MDRT 1996 Annual Meeting changed her life and made her appreciate she wasn\u2019t just a sales person but was part of a community that helped people \u2013 improving knowledge and service skills and productivity and high ethical standards. She said this applies for both her team and her company.<\/p>\n<p><b>Susan Paterson<\/b> \u2013 struck by some of the cultural and structural differences that exist between the Asian and Australian markets. She pictured somebody finishing university in South East Asia before quite pro-actively seeking employment with AIA Global in seeking a career in life insurance and\/or holistic advice. \u201cBut I don\u2019t see the same energy or commitment in Australia. There is an unbalanced scorecard there.<\/p>\n<p>Paterson\u2019s other key take-away was the extent of the training, assistance and ongoing support provided to agents by Asian insurance companies \u2013 \u201c\u2026they have so much to offer behind the scenes \u2013 much more than in Australia.\u201d<\/p>\n<p><b>Vicki Writer<\/b> \u2013 \u201cI believe that over time that the role of the adviser will transition to more of a life strategist for the client. The advice component will be one element of a multi-faceted client engagement conversation and service. I see the adviser setting up a range of referral networks (outside of the traditional ones) and aligning themselves to people like health and wellbeing experts, dieticians and career counsellors and becoming the facilitator in helping the client plug those life gaps. This is something that seems to already be taking place in the USA and I believe it will be the future here, too.\u201d<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p><b>Elise Sanders<\/b> \u2013 \u201cWe always feel like we\u2019re moving through the eye of a storm. When you look at a 20-year timeline we\u2019ve always gone through challenges. But it\u2019s when tough times come along that you often see the greatest innovations across the board. Businesses that are adaptable have a better chance of standing the test of time.\u201d<\/p>\n<p><b>Michael Grammatico<\/b> &#8211; \u2013 \u201cProtection will continue to be the foundation of our advice delivery process. The way we educate our clients and the risks that are involved and how we address those concerns will always be the building blocks for our advice. We agree that once a person becomes a client of Innovative Financial Solutions, then they are a client for life and we take that journey with them.\u201d<\/p>\n<p><b>Joe Cheng<\/b> &#8211; In emphasisng that the life insurance industry is about helping people, Joe drew on a famous quote from a sea explorer: \u201cIf you want people to build a ship, don\u2019t ask them to collect the wood or assign the job to them. Rather, teach them to learn about the immensity of the sea.\u201d Joe said this lesson also reflects MDRT values, and which is why MDRT is a focus for AIA in Hong Kong and in other Asian countries. \u201cMDRT is not about personal or financial achievement. It\u2019s about a whole person concept. It\u2019s about helping, serving, giving and continuous learning. And by doing that you will have a good relationship with people \u2013 your customers, your family and your friends.\u201d<\/p>\n<script type=\"text\/javascript\">if (typeof(addthis_share) == \"undefined\"){ addthis_share = {\"passthrough\":{\"twitter\":{\"via\":\"riskinfonews\"}}};}\n\nvar addthis_config = {\"data_track_clickback\":false,\"data_track_addressbar\":true,\"data_track_textcopy\":true,\"ui_atversion\":\"300\"};\nvar addthis_product = 'wpp-3.5.9';\n<\/script><script type=\"text\/javascript\" src=\"\/\/s7.addthis.com\/js\/300\/addthis_widget.js#pubid=ra-53a3668b19172d69\"><\/script>","protected":false},"excerpt":{"rendered":"<p>The AIA\/MDRT Experience Round Table in Hong Kong at the end of January strongly reinforced what appears to be a global trend of positioning the needs and wellbeing of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-82","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature"],"_links":{"self":[{"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/posts\/82","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/comments?post=82"}],"version-history":[{"count":0,"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/posts\/82\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/media\/100"}],"wp:attachment":[{"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/media?parent=82"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/categories?post=82"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/24\/wp-json\/wp\/v2\/tags?post=82"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}