Advisers rate insurers, results not great across 2020

Financial advisers have been given the opportunity to rate life insurance companies, with satisfaction rates heading south during the pandemic, shows new research. Premium rates have increased and continue to rise, while advisers try to reassure clients during tumultuous times.

The research was undertaken by Investment Trends, the Planner Risk Report, in a survey of over 500 financial planners during 2020. Just a quarter of the financial advisers surveyed rated their main life insurer as ‘very good’, a poor mark, down from 57 per cent in the previous annual survey.

Results

Challenger’s Neos brand took out the overall adviser satisfaction spot, taking over from Clearview - 56 per cent of advisers rated it ‘very good’ compared with 54 per cent for Clearview. Zurich came in third place.

Eighty per cent of those advisers surveyed reported making changes to their delivery of risk advice during the pandemic, with 30 per cent saying they engaged with clients more frequently, while 23 per cent had checked in with client premium levels.

Twenty-three per cent of advisers said they had looked into life insurer quality of service, while 22 per cent reported adopting new technology.

Over 60 per cent of advisers reported increasing premiums as their biggest challenge across the year. Over half said compliance challenges were at the top of their concerns for the year, with another 50 per cent saying paperwork and administration were an issue.

Advisers reported the best ratings for insurers who offered value for money and comprehensive support, for example, premium relief, proactive contact and easy online services. Competitive rates also counted, but it wasn’t the only factor, with good communications and quick turnaround times important.