Advisers, Insurers Need to Improve Efficiency Under LIF
Now that advisers and insurers are operating in the new world of the Life Insurance Framework (LIF), significant focus must be placed on exploring ways to improve the efficiency of their practice, according to AFRM Claims Advocacy (ACA) CEO, Bruno Muraca.
“Early in the new financial year is a natural time for all businesses to be examining how to reconcile the seemingly contradictory needs to reduce costs while improving service delivery - and ACA’s suite of services allows advisers to do exactly that,” Muraca said.
“Both advisers and insurance companies we are working with have identified significant benefits when using our services.
“For example, saving an adviser’s practice up to 10 hours in time taken processing a straightforward insurance claim and significantly more for TPD claims. If we consider the hourly rate for advisers and also administration staff, then 10 hours per claim can add up to significant costs on the practice.”
So, Muraca said, freeing up advisers’ time means they have more time to focus on business development.
“Insurers are also looking at ways to support advisers with business efficiencies and this is evident with AIA Australia recently adding our service to their Business Growth Hub,” Muraca said.
Muraca also said another efficiency that ACA’s skill sets brought to advisers and their clients is that once they commence working with clients on behalf of advisers, clients are reassured and less likely to engage lawyers to advise on the claim.
“Why pay up to 40 per cent of your benefit in legal fees when it is simply not necessary? The advisers we work with say working with us is a much more user-friendly process, and often the claim process is two to three months quicker than if it goes legal,” he said.