Growing a new adviser business is tough, and many focus on the sales aspect of the role – however, according to one industry expert, insurance will “sell itself” so long as clients are given the right advice.
Former Willis Towers Watson NZ director Mike Sargent has had an extensive career in insurance broking, and says that one of the first things he learned was to keep everything as simple as possible. He also says that regardless of commission structures, an adviser’s job will always remain the same – to advocate for the client, and give them the best possible chance of getting their claim paid.
“When I read about people saying they can go and do their insurance themselves – that’s fine, but when a claim occurs, watch out,” Sargent said.
“There are many claims that are clear-cut, where they either are a [valid] claim or they’re not. But in my years of experience, there are many ‘grey claims’, and that’s where you need your broker.”
“The fact is that they’re on your side, whether you’re paying a fee for their services or they’re being paid commission – they’re still working for you,” he continued.
“People often say that if a broker is on commission, it’s in their interest to sell you as much insurance as possible, but my argument is that I look for the long term. It’s about making sure that they understand the insurance and understand the business, and that you’re going to bat for them at all times.”
Sargent says that when it comes to insurance, there’s also no need to “over-sell” its importance. He says the primary focus should be on offering solid financial advice to the client, taking into account their business, goals and individual circumstances.
“I’ve always taken the view that if you give good, sound advice, then it’ll sell itself,” Sargent said.
“When I first started in insurance and went out into the field, I learnt to keep things simple for people and make it as easy as possible for it to understand.”
“There are a lot of good brokers out there that focus on giving good advice without worrying about the selling,” he added.
“If you give good advice, good options and understand the policies, people will respond to you. You have to earn trust with your clients, and, if you need to grow your business, that’s the way it’ll happen.”
