The recent announcement that existing advisers won’t necessarily be required to obtain a bachelor level degree to continue practising gives context to this article from Zurich’s Andy Marshall. While he strongly supports the argument to raise the bar for minimum education standards for advisers, Andy says there need to be some ‘sensible exceptions’…
Many advisers’ offices are adorned with awards, client testimonials and financial literature, which all demonstrate that it is a place of business that deals successfully with the financial concerns of its clientele, and is suitably qualified to do so. What of the advice givers? What is the demonstration of their ability to successfully dispense advice? Is it grey hair? (apologies to the pigment-challenged individuals who may be reading this). Or is it, as it is with the medical fraternity, the earned honour of a degree, the certification of the board and their fellowship in a speciality? Is the value of the financial advice being administered judged on the educational qualifications of the practitioner? Should it?
There need to be some sensible exceptions
I knew an adviser who proudly hung behind his chair (in full view of prospective clients) every education certificate he received. or him it served as a justification for why the prospect had been asked to pay for the first appointment. That’s right, he charged for the first appointment – $440 in fact. And he specialised in insurance advice. According to the adviser, it formed part of his discussion with the prospect. It was treated as a differentiator in the market, telling the prospect how many years and how much money was spent on obtaining his education, and as such he was considered a specialist in the area of advice (business insurance was the niche). Without the education, that pitch, which was highly successful, would not have been able to have been made.
In the current focus on education for financial services, it has been rightfully said that for advice to be considered a profession then the education standards need to be raised. But by applying the standard only to some, could we diminish, rather than raise, professional standards?
There need to be some sensible exceptions.
On a training course, a group called ‘Where Eagles Dare’ run a team-building game of sorts and two things always were missed by participants:
- No-one took time to speak to the wise man in the game
- No one asked ‘what’s the objective here?’ ‘What’s possible?’
Those deemed ‘wise’ in the risk adviser ranks are the advisers who have perfected their craft after years of client advice and through understanding human emotions, human behavior and most of all, how people deal with grief during the claims process. It is through these stories they recruit new clients and obtain advocacy. There’s no course yet that can deliver that type of experience – at least not that I know of.
As for the objective and what’s possible, is not the ultimate objective the provision of appropriate advice for all Australians to address the enormous underinsurance issue?
To get it right, and address these objectives, a balance is needed. First, we need the ability for the wise advisers to continue to gain their ongoing education credits, while recognising and labelling them as the professionals that they are. Second, we need to be encouraging best practice sharing with the younger and newer entrants and collaboration with industry bodies, as both these components of a mentoring mechanism and education exchange are critical.
Third, insurance houses need to provide practical implementable client engagement education units in a curriculum designed to equip all participants with the benefits of asking the right questions of the wise practitioners amongst us, and capturing the skills that clients really need that add credibility to the certificates on the wall.
Andy Marshall is the Head of Sales Strategies and Research, Life Risk at Zurich Financial Services Australia Limited, having previously held the role of Regional Manager, Life Risk for Zurich in Victoria. He has more than 20 years financial services experience across a range of roles, including sales management, staff development and underwriting plus seven years as a financial planner.
Contact or follow the author: Twitter
Important information: This publication is dated April 2016 and does not take into account your personal objectives, financial situation or needs. Therefore you should consider these factors, the appropriateness of the information provided, and the Zurich Wealth Protection Product Disclosure Statement (PDS) (available on www.zurich.com.au or by calling us on 131 551) before making a decision. The information in this publication is a summary only and there are relevant exclusions and conditions. Zurich Australia Limited ABN 92 000 010 195 AFSLN 232510 is the issuer of Zurich Income Replacement. CLYH-011355-2016