"We train advisers extensively on products, compliance, underwriting, and technology, but not how to advise. It’s a skill that has to be taught, learnt, and applied."
‘They didn’t take out protection but it’s okay because I gave them some quotes and told them about Critical Illness Cover (CIC) and Income Protection (IP). The customer made an informed choice not to buy so I did a great job’ – sound familiar?
In my opinion, the expression ‘informed choice’ shouldn’t exist in the context of advice. When a customer comes to you for advice, they expect advice, not a choice. You should have explored the customer’s circumstances and identified risk & shortfall. You should have led the customer to agree (explicitly) that the financial repercussions of ill-health or injury can be severe, and they should protect themselves against these scenarios.
The customer now expects you to apply your expertise and research the most suitable solution, outlining their next steps towards financial resilience. If you’ve completed those tasks, there should be no choice for the customer to make.
“You don’t expect your doctor to show you an x-ray of your broken foot and then ask what you want to do about it.”
Based on experience, the reason customers don’t take your protection advice is because, in reality, it isn’t advice. You’ve given the customer some quotes, and explained the difference between core and enhanced products - does this mean you've done a good job?
No, close to everything you’ve given them can be found online and/or via a non-advised process. In other words, you’ve given non-advice.
The customers that know they should buy protection in the first instance will thank you because you’ve prevented them from buying the wrong products but don’t kid yourself that you have given advice. But those who don’t want to buy protection, and probably don’t think they need it, still need to be financially resilient in case the worst were to happen.
“If all you’re doing is providing quotes and asking customers to let you know if they want to go ahead, it’s unlikely that those customers will ever purchase protection.”
Recently, I came across a LinkedIn post from an adviser lamenting the fact that their customers (husband & wife) declined to purchase a policy. Some years later, she developed breast cancer, and you can guess the rest. I’m willing to bet the adviser provided some quotes and explained different products. Potentially told them to get in contact when they wanted to go ahead – I’ve seen this happen so many times!!
Did they do a good job because the couple left with an informed choice? No, that’s justifying poor advice. Informed choice is too often regarded as a good customer outcome, but the profession needs to acknowledge that it isn’t…until the customer acts on your advice. Anything other than that outcome leaves the customer financially vulnerable – that’s the brutal reality.
“I’m not blaming anyone for this state of affairs. Our industry has deemed it unnecessary to teach advisers how to advise properly so it’s hardly surprising that not many advisers possess the skills to do so.”
You can know every product on the market, legal niceties about trusts & tax, and which provider is good with which underwriting niche. That makes you a great technician, but not necessarily a good adviser.
We train advisers extensively on products, compliance, underwriting, and technology, but not how to advise. It’s a skill that has to be taught, learnt, and applied.
