{"id":85,"date":"2017-03-21T09:54:18","date_gmt":"2017-03-20T23:54:18","guid":{"rendered":"http:\/\/magazine.riskinfo.com.au\/31\/?p=85"},"modified":"2017-07-14T14:42:20","modified_gmt":"2017-07-14T04:42:20","slug":"mdrt-2017-international-adviser-round-table-part-1","status":"publish","type":"post","link":"http:\/\/magazine.riskinfo.com.au\/31\/mdrt-2017-international-adviser-round-table-part-1\/","title":{"rendered":"MDRT 2017 International Adviser Round Table &#8211; Part 1"},"content":{"rendered":"<div class=\"fw feature1\">\n<h3>Riskinfo joined forces with the MDRT organisation and Zurich in an International Adviser Round Table discussion on the changing nature of the \u2018Value of Advice\u2019 equation\u2026<\/h3>\n<\/div>\n<h3>Part 1<\/h3>\n<p><strong id=\"#top\">Table of contents\u00a0<\/strong>(Click these links to move directly to those topics)<\/p>\n<ol>\n<li><a href=\"#01\"> The value proposition <\/a><\/li>\n<li><a href=\"#02\"> Value of advice challenged by changing consumer behaviour <\/a><\/li>\n<li><a href=\"#03\"> Consumers, advisers differ on what constitutes value? <\/a><\/li>\n<\/ol>\n<hr \/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-701\" src=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-01.jpg\" alt=\"\" width=\"1800\" height=\"985\" srcset=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-01.jpg 1800w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-01-300x164.jpg 300w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-01-768x420.jpg 768w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-01-1024x560.jpg 1024w\" sizes=\"auto, (max-width: 1800px) 100vw, 1800px\" \/><\/p>\n<p><b>Panelists (L &#8211; R)<\/b><\/p>\n<ul>\n<li><b>Peter Sobels<\/b> \u2013 Publisher, Round Table Moderator<\/li>\n<li><b>Dominque Schuh<\/b> \u2013 Australian MDRT adviser member<\/li>\n<li><b>Michelle Hoskin <\/b>\u2013 Standards International, United Kingdom<\/li>\n<li><b>Ryan Pinney<\/b> \u2013 US MDRT adviser member<\/li>\n<li><b>David Braithwaite<\/b> \u2013 United Kingdom MDRT adviser member<\/li>\n<li><b>Mathew Fogarty<\/b> &#8211; MDRT Oceania Chair, Co-host<\/li>\n<li><b>Jessica Brady &#8211; <\/b>Zurich Financial Services Australia Senior Exec \u2013 Sponsor\/supporter<\/li>\n<li><b>Kobus Kleyn<\/b> \u2013 South Africa MDRT adviser member<\/li>\n<\/ul>\n<hr \/>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Our 2017 MDRT International Adviser Round Table asked advisers from around the world to reflect on the potentially changing nature of the \u2018Value of Advice\u2019 equation.<\/p>\n<p>We wanted to know how advisers from different countries saw the future for financial advice in general and life insurance advice in particular, as it relates to the delivery of value to the consumer.<\/p>\n<p>We sought their views on the key issues directly impacting their own advice business, as well as those affecting the life insurance and financial services sectors in their country:<\/p>\n<ul>\n<li>In a changing world, is the \u2018value of advice equation\u2019 changing with it?<\/li>\n<li>If so, how are the following elements taken into account in a changing \u2018value of advice\u2019 equation:\n<ul>\n<li>Remuneration<\/li>\n<li>Commoditisation<\/li>\n<li>Technology<\/li>\n<\/ul>\n<\/li>\n<li>Is there a growing need for risk-focused advisers to clearly articulate to the consumer how they add value?<\/li>\n<li>What do you believe is the secret to unlocking the answer to addressing underinsurance in your country?<\/li>\n<\/ul>\n<p>Our adviser discussion commenced with comparing notes on the \u2018value of advice equation\u2019 and whether it is changing or evolving.<\/p>\n<h3>Part 1<\/h3>\n<h3 id=\"01\">The value proposition <span style=\"font-size: 12pt\"> &#8211; <a href=\"#top\">Back to top<\/a><\/span><\/h3>\n<p>Speaking first with South Africa\u2019s <b>Kobus Kleyn<\/b> (<a href=\"http:\/\/www.kainosgroup.co.za\/wp\/\" target=\"_blank\" rel=\"noopener noreferrer\">Kainos Group<\/a>), we referenced an article written by Kobus in a 2016 edition of the FIA Insight Magazine, in which he noted, \u201c<i>Our profession will have to pay closer attention to the real value that is inherent in the product that we sell to customers, namely our advice offering<\/i><i>. Those who can leverage the value in their advice offering will prosper. Those who cannot will surely fall by the wayside.<\/i>\u201d<\/p>\n<p>Kobus emphasised to the panel that true value lies in the advice; not the product: \u201cThe value proposition is what clients and prospects and the financial consumer will perceive out there and this must become the reality over the long term. So is it about products or is it about advice?\u201d He stressed that the product must be a consequence of the outcome of long term holistic financial planning: \u201cThe value proposition is what differentiates,\u201d he said, adding that \u201c\u2026a differentiator is not a product.\u201d<\/p>\n<blockquote><p>Our profession will have to pay closer attention to the real value that is inherent in the product that we sell to customers, namely our advice offering<\/p><\/blockquote>\n<p>Looking to the future, which he believes is transforming much quicker in recent times with what he calls a tsunami of regulatory reform and an attitude change globally, Kobus added \u201cWe have to have people coming into our profession \u2026willing to do long-term financial planning, not sell policies only for quick gains. Until financial advisers get away from selling products instead of rather \u2018selling\u2019 advice first \u2026people will not be willing to pay for advice. Anybody can sell a product,\u201d he said, \u201c\u2026but we should focus on selling and giving advice foremost.\u201d<\/p>\n<p>Kobus challenges his fellow financial advisers to ask themselves the question of whether they are offering product- or advice solutions to their prospects and clients. He also warned on new adviser entrants into the sector: \u201cUntil all financial services stakeholders realise that they should be focusing long-term on bringing new people into our industry and helping them to transform through continuous professional development, to become true financial advisers, and then financial planners and eventually certified financial planners or with similar designations &#8211; not product sellers, or product agents, our profession is going to find it tough to keep up with charging fees and especially where a lot of countries are doing away with commission of all sorts\u2026\u201d<\/p>\n<p>US adviser, <b>Ryan Pinney<\/b> (<a href=\"https:\/\/pinneyinsurance.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Pinney Insurance<\/a>) was asked for his perspective on the potential changing nature of advice. He told the panel, \u201cUnfortunately for the US we\u2019re trailing regulation compared to the UK and Australia and \u2026I think that we\u2019re going to end up in a worse place than either one when we finally land.\u201d<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Ryan was referring in particular to the recently-implemented and contentious US Department of Labor reforms, \u201c\u2026it basically changes the whole dynamic of how you have to interact with a client or a customer. We\u2019re going to a fiduciary standard whereas before it was a \u2013 kind of a best advice standard.\u201d He added, \u201cI think it\u2019s going to change the nature of advice from a legal perspective [and] there\u2019s going to be a lot more compliance paperwork that\u2019s needed.\u201d<\/p>\n<p>Ryan also envisaged higher levels of litigation that will accompany the introduction of the new US client fiduciary standards for advisers: \u201cThere\u2019s also going to be a lot more lawsuits because it\u2019s impossible to say today that one product is superior or the absolute best in any situation and have that recommendation stand the test of time.\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-04.jpg\" alt=\"\" width=\"1600\" height=\"672\" class=\"alignnone size-full wp-image-734\" srcset=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-04.jpg 1600w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-04-300x126.jpg 300w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-04-768x323.jpg 768w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-04-1024x430.jpg 1024w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/p>\n<p>Asked whether these new standards will change the way that he will structure his business, Ryan noted the biggest advantage for his business was that the fiduciary standards were geared mostly towards investments: \u201c\u2026my business is risk-based and so from a risk-based perspective it has less impact today than it will in the future. But it\u2019s coming\u2026\u201d, he warned.<\/p>\n<p>Looking towards that future, Ryan voiced concerns about US risk-focussed advice business being required in future to introduce the US equivalent of an Australian Statement of Advice: \u201c\u2026 unfortunately I\u2019ve seen what a Statement of Advice from Australia looks like at 60-plus pages to sell a single policy.<\/p>\n<p>We asked Ryan whether this may change the way that he will demonstrate or deliver value in future.<\/p>\n<blockquote><p>the value of advice equation has changed, particularly in Australia<\/p><\/blockquote>\n<p>\u201cI think the question becomes what is value? People will buy things based on several factors, and I talk about this often. They\u2019ll buy things based on convenience; they\u2019ll buy things based on the speed or timeliness of the delivery; and they\u2019ll buy things based on the actual intrinsic value of the product or service. So you have to decide which one of those are you going to go after? If it becomes harder to deliver actual intrinsic value then it will devolve to an economy where it\u2019s commodity-based, as in how fast can I get it to you and how cheaply can I do it?<\/p>\n<p>Queensland adviser, <b>Dominique Schuh<\/b> (<a href=\"http:\/\/www.schuhgroup.com.au\/home\" target=\"_blank\" rel=\"noopener noreferrer\">Schuh Group<\/a>), told the panel she has spent a reasonably short period of time in the industry, \u201c\u2026but even over that period I think the value of advice equation has changed, particularly in Australia. I\u2019ve seen our jobs become more complex so then the value of what we do has had to increase. But the way we communicate that has had to improve as well,\u201d she said.<\/p>\n<p>Asked to summarise the changes she has seen in her seven years in the industry, Dominique (Dom) singled out compliance changes: \u201cMostly in compliance, just in what we\u2019ve had to do for our clients and then having to work through the whole back office side of that to really get it as efficient as possible.\u201d<\/p>\n<p>Dom agreed there was a difference between adding value for life insurance advice compared with more holistic advice: \u201cI\u2019ve got some 80-plus year-olds who just want to have everything taken care of, so that conversation is around explaining to them, \u2018\u2026Well, this is what we\u2019re actually doing for you. Is that okay?\u2019 By contrast, some 20-year-olds might just need an income protection policy, so then you\u2019re having a completely different conversation with them. But the same basis is around being able to explain [to our clients] \u2018This is the outcome you\u2019re going to get.\u2019<\/p>\n<p>\u201cWhat of the future? I just think the complexity of it all is changing, which means that we have to keep adapting and \u2026keep improving \u2026 he way that we communicate that. So it\u2019ll keep us in a job in Australia!<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<h3 id=\"02\">Value of advice challenged by changing consumer behaviour<span style=\"font-size: 12pt\"> &#8211; <a href=\"#top\">Back to top<\/a><\/span><\/h3>\n<p>Considering this question from the UK adviser perspective was <b>David Braithwaite<\/b> (<a href=\"http:\/\/citrusfinancial.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Citrus Financial<\/a>):<\/p>\n<p>\u201cIt is being challenged,\u201d said David \u2013 \u201c\u2026 the value of the advice that we give to people over there. And the trouble that we have is that we as advisers don\u2019t like change. \u2018We\u2019ve always done it that way and it\u2019s kind of worked,\u2019\u201d he said, encapsulating a typical UK adviser point of view. \u201cIt\u2019s very fragile the way in which we\u2019re set up, because we get very engaged with clients. We want them to be our friends. We want them to love us and we like that they\u2019ve bought from us. Therefore we\u2019re all friends now and it\u2019s that difficulty between going from that to actually demonstrating value,\u201d he said.<\/p>\n<p>David told the panel his own business is challenging what\u2019s been the norm and they have been asking themselves how they can do things better. He also observed \u201cAnd what we\u2019re also finding is the demographic<b> <\/b>of the people that we deal with\u2026 have a different perspective of value.\u201d<\/p>\n<blockquote><p>no-one wants life insurance. No-one wants a pension. They want what it does<\/p><\/blockquote>\n<p>He expanded, saying younger clients looking for a financial product will probably go online. \u201cBut Google\u2019s only going to answer the question they\u2019ve asked it. So once they get that far, then they\u2019ll come to you. Now what we have to \u2026say to them is \u2018This is what we do. You want that but actually how about looking at it another way\u2019.\u201d David\u2019s point was that this is how he adds value from an advice perspective. Agreeing with Kobus, David said \u201c\u2026it isn\u2019t about the product. It\u2019s the why; it\u2019s what it does; not the product. And once we start looking at that it\u2019s a different conversation because no-one wants life insurance. No-one wants a pension. They want what it does.\u201d<\/p>\n<p>Previously, said David, only the adviser had access to all the products \u201c\u2026so you could actually be lazy. You could just take an order and sell them a product and \u2026 you\u2019ve got yourself a client.<\/p>\n<p>David agreed this style of product-based advice service continues, but maintains the growing need for the adviser to demonstrate how they are adding value: \u201c\u2026we have to show how we\u2019re adding that value,\u201d he said.<\/p>\n<p>\u201cWe\u2019re working on things now where we\u2019re getting our existing clients to be advocates for us and talk about the value that we added to them, and we\u2019re coming up with different strategies for that. We\u2019re looking at adding value when we go and see a client for a review instead of just turning up with a valuation, because they can go online and log in and see the value of their investments for themselves.<\/p>\n<p>Notwithstanding the recent implementation of the UK\u2019s retail Distribution Review\u00a0 reforms, David told the panel that not all of the changes in his business were brought about due to regulatory reform \u201c\u2026to actually keep your clients engaged you have to change the way that you deliver that advice and add that value. It\u2019s all about that value\u2026You want people queueing up to actually use you because you\u2019re offering something a little bit different in the marketplace. And you have to stand out and be talked about by people in that way,\u201d he added.<\/p>\n<blockquote><p>We need to find the people that value what we\u2019re doing<\/p><\/blockquote>\n<p>Referring to Australian Statements of Advice, David said he can see a time in the UK where \u201c\u2026we\u2019re going to have to do the Statements of Advice. So we want to be ahead of that curve and not get caught short and then have to deal with change. I\u2019d rather be the implementer of that change; not have it forced on me,\u201d he said.<\/p>\n<p>David told his peers he was not interested in providing value for consumers who prefer to \u2018shop\u2019 online or at supermarket check-outs for life insurance and investment solutions: \u201cThey\u2019ve now got an outlet [direct or online]. We need to find the people that value what we\u2019re doing and focus on them and magnify it and multiply it.<\/p>\n<p>Melbourne-based adviser, <b>Mathew Fogarty<\/b> (<a href=\"http:\/\/fpbydesign.com.au\/about.html\" target=\"_blank\" rel=\"noopener noreferrer\">Financial Planning by Design<\/a>)told the panel that when he first entered the industry in the late 1980s he was trained by others as a product-seller before eventually emerging as a needs\/solutions-based planner: \u201cI was selling product\u2026 that\u2019s the way it was. You were recruited and if the client could afford $25 a week and you had your list of a hundred people and your best friends then that\u2019s how you got started,\u201d said Mat.<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Fast-forwarding to today, Mat sees his evolved financial advice career as \u201c\u2026the best opportunity ever.\u201d Following on from David\u2019s point that he doesn\u2019t want to provide his services to consumers who prefer direct or online solutions, Mat noted, \u201cIf I want to remain doing what I do, then as a business person you have to sit down and ask what it costs for me to deliver my advice. If I cannot stay in business, I&#8217;m useless to my clients. As an individual I can only give a limited amount of advice to so many people. So I\u2019d probably agree that, yes, things are changing, such as the compliance regime.<\/p>\n<p>Given the regulatory requirement in Australia for Statements of Advice, Mat sees his SoAs as \u201c\u2026the best position statement.\u201d\u00a0 He says the process allows him to work out whether the prospective client is a good fit for his business. \u201cAnd if they\u2019re not a fit they become a liability to the business and I\u2019ve learnt that over time, they just became a headache. So, for those clients I retain, they pay me for my advice, which is my product.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-03.jpg\" alt=\"\" width=\"1600\" height=\"1352\" class=\"alignnone size-full wp-image-733\" srcset=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-03.jpg 1600w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-03-300x254.jpg 300w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-03-768x649.jpg 768w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-03-1024x865.jpg 1024w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/p>\n<p>In terms of the changing nature of the value of advice, Mat subscribes to the growing importance of paraplanners to interpret fact find documents and construct Statements of Advice, thereby allowing Mat to maximise the time available to him to genuinely add value for his clients.<\/p>\n<p>Mat sees himself and other advisers as facilitators: \u201cIt\u2019s a learned thing and it\u2019s mentoring and that\u2019s what you\u2019ve got to teach the new advisers coming through. And there\u2019s also education of your clients,\u201d he said, in terms of how he continues to add value to his client relationships over time.<\/p>\n<blockquote><p>until we want what we want, when we want it, you just have to be there to be found<\/p><\/blockquote>\n<p>Heightened mortality fears in the united Kingdom saw UK best practice business expert, <b>Michelle Hoskin<\/b> (<a href=\"http:\/\/standardsinternational.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Standards International<\/a>), offer the panel a sobering perspective on the notion of consumer perception of the value of life insurance: \u201cI\u2019m 40 next year and obviously you\u2019ve all seen the news about bombs going off at concerts and people being stabbed in central London and I swear to you two weeks ago was the first time I actually thought that I could be on a bridge or I could be at a concert or I could be in Borough Market and get stabbed,\u201d said Michelle.<\/p>\n<p>\u201cThe reality is there\u2019s not a lot more you can actually do because\u00a0 I\u2019ve been in financial services for 20 years and it took a bomb going off at a concert for me to want to buy more [life insurance]. So you can sell advice, you can sell value, you can talk about value but until we want what we want, when we want it, you just have to be there to be found.<\/p>\n<p>The only advisers that I see question the value their clients are getting are the ones that seem to have this battle constantly because they have no confidence in themselves anyway. And the bottom line is the value \u2013 the clients that you want to value what you do are the clients that value what they do. We only live once, and even if I wasn\u2019t in financial services I wouldn\u2019t go and Google it [life insurance] because I can\u2019t risk getting it wrong.<\/p>\n<p>Asked whether she believes consumers in the UK will be more disposed to listen to the life insurance advice message, Michelle replied, \u201cAbsolutely. I\u2019ve studied the playground at school and have been talking to the mums about many of them not having wills or any life insurance. I\u2019m saying to them that they need to sort it out, and I\u2019ve referred them to financial advisers. I did it two weeks ago in a playground. Do you know what I mean? It\u2019s real.<\/p>\n<h3 id=\"03\">Consumers, advisers differ on what constitutes value?<span style=\"font-size: 12pt\"> &#8211; <a href=\"#top\">Back to top<\/a><\/span><\/h3>\n<p><a href=\"https:\/\/www.zurich.com.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">Zurich Financial Services Australia\u2019s<\/a> <b>Jessica Brady<\/b> was asked for her view of the changing value of advice equation, based on the many conversations she has with advisers and advice business owners:<\/p>\n<p>\u201cI&#8217;m very fortunate in that I have spoken to so many advisers and there\u2019s such a spectrum of where people sit. From an Australian perspective there\u2019s been a really interesting period that we\u2019ve all gone through. My observation has been that we have definitely moved from this kind of product-centric advice perspective. This conversation around value\u2019s really interesting because I think what advisers grapple with is what advice they may think is valuable is not valuable in the eyes of their consumers.\u201d<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Jessica continued, \u201cThey\u2019ve spent a lot of time considering products and strategies that they feel add value to their client, which I\u2019m sure they do. But it\u2019s not necessarily the same thing that their consumers value in their relationship. So the conundrum, I think, is around how you achieve alignment of values and understand what it is that the consumer will value and how you then make sure that the experience that you offer that consumer is in line with that, while still fulfilling all of the regulatory and compliance obligations,\u201d said Jessica.<\/p>\n<h3>Walking the talk<\/h3>\n<p>Expanding on Jessica\u2019s point about whether advisers and consumers differ when it comes to what constitutes value, Michelle asked the advisers on the panel whether they have walked in the shoes of their clients by having their own financial plan created for them by another adviser.<\/p>\n<blockquote><p>Our biggest blind spots are almost always the ones that we think we have already prepared for<\/p><\/blockquote>\n<p>For those advisers who have not actually been a client in their own financial plan, Michelle\u2019s message is blunt: \u201cYou\u2019ve not got a clue what it\u2019s like to be a client unless you\u2019ve actually been one.\u201d<\/p>\n<p>Ryan strongly supported Michelle\u2019s point and there was general consensus from the panel that having their own \u2018client experience\u2019 is an invaluable commitment for all advisers.: \u201cOur biggest blind spots are almost always the ones that we think we have already prepared for,\u201d observed Ryan, who also suggested that if Riskinfo polled all MDRT members, asking them how many had their own insurance (or wrote it themselves) and a will and a trust of their own \u201c\u2026you would probably be dismayed at the results.\u201d<\/p>\n<p>Jessica: \u201cJust to add to that point we\u2019ve done some interesting research in a white paper and the findings were astounding. We asked financial planners about them and their business and how many of them had wills and how many of them had succession plans and very, very few businesses, especially when you think the average Australian adviser, who must be around age 55 &#8211; very few of them had considered succession. This includes advisers who provide estate planning advice. They\u2019re thinking about creating clever strategies for their clients, yet very few had a done their own plans.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-07.jpg\" alt=\"\" width=\"1600\" height=\"633\" class=\"alignnone size-full wp-image-738\" srcset=\"http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-07.jpg 1600w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-07-300x119.jpg 300w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-07-768x304.jpg 768w, http:\/\/magazine.riskinfo.com.au\/31\/wp-content\/uploads\/sites\/20\/2017\/03\/features-01-07-1024x405.jpg 1024w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/p>\n<p>\u201cIf you think about financial advisers advocating the benefits of creating goals-based advice it\u2019s quite scary how few actually have a business plan to begin with,\u201d she said.<\/p>\n<p>Jessica told the panel she is seeing a key trend emerging in the Australian market:<\/p>\n<p>\u201cThere are still new adviser coming in being taught how to sell and they sell products. But there is also this new wave of younger financial advisers who are moving to more of a coaching style arrangement because they\u2019ve realised that their clients actually value the coaching benefits of advice as opposed to potentially the underlying strategy.\u201d<\/p>\n<p>Jessica continued, \u201cAbsolutely, I think that advisers have really cottoned on to the fact that clients value cash flow management and are happy to pay for that. But it\u2019s not something typically that would have happened as part of the advice remit ten years ago.\u201d<\/p>\n<p>Ryan again agreed, noting. \u201cI think my number one sales pitch to my clientele of value provided is: \u2018Here&#8217;s my own business plan and here\u2019s my own succession plan. What does your current adviser have in place to take care of you once he retires?\u2019\u201d<\/p>\n<div class=\"fw ad\"><!-- Either there are no banners, they are disabled or none qualified for this location! --><\/div>\n<p>Ryan believes this approach could take more clients away from advisers\u2019 competitors than any single conversation they could ever have.<\/p>\n<p>Michelle, Ryan, Jessica and the rest of the panel strongly agreed that \u2018walking the talk\u2019 for all advisers was critical.<\/p>\n<p>Under the theme of \u2018Price is what you pay; value is what you get\u2019, Kobus told his peers \u201c\u2026Our clients normally know what they\u2019re paying for products \u2026but value really is what they want to know they are receiving.\u201d He believes the most important wants, needs and outcomes are peace of mind for the client and their family. \u201cThey simply want to know, \u2018Is my daughter, my son, my wife and other dependants going to be taken care of when life happens and will I be ok when retirement comes about?\u201d<\/p>\n<p style=\"text-align: center\"><a href=\"http:\/\/magazine.riskinfo.com.au\/31\/mdrt-2017-international-adviser-round-table-part-2\/\" class=\"woo-sc-button dark  silver med\" ><span class=\"woo-\">Continue on to Part 2<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Riskinfo joined forces with the MDRT organisation and Zurich in an International Adviser Round Table discussion on the changing nature of the \u2018Value of Advice\u2019 equation\u2026<\/p>\n","protected":false},"author":1,"featured_media":717,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-85","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature"],"_links":{"self":[{"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/posts\/85","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/comments?post=85"}],"version-history":[{"count":0,"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/posts\/85\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/media\/717"}],"wp:attachment":[{"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/media?parent=85"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/categories?post=85"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/magazine.riskinfo.com.au\/31\/wp-json\/wp\/v2\/tags?post=85"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}