The care factorBY TONY STEPHENS | THURSDAY, 25 JUL 2019 4:04PMA good friend of mine lost his son to cancer not long ago, something no parent should ever have to experience. Even though this would have been one of the hardest things he will ... Upgrade your subscription to access this article
Join the growing community of financial advisers
with unlimited access to our latest news, research and analysis of the industry.
Become a premium subscriber today. |
Latest News
NCAs unlikely to solve retirement advice gap: HUB24, CFS
HUB24 and Colonial First State (CFS) say the New Class of Advisers (NCA) will unlikely solve the retirement advice gap Australians face, noting the focus needs to be on helping reduce friction for those with complex advice needs.
Advised cover faces claims data test
Group superannuation insurance appears to outperform individual advised cover on some claim's measures, raising questions about the value of advice when it comes to protecting clients against disability.
ASIC stalls Sequoia bid to ditch cross guarantee deed
ASIC is again putting up roadblocks to Sequoia Financial Group's attempt to revoke the deed of cross guarantee with InterPrac Financial Planning, asking more questions and requesting more information before the group rids itself of all liabilities arising from the Shield and First Guardian disaster.
Praemium's new leadership toughens earnings yardstick
Praemium's new leadership will be keeping a close eye on costs, with new chief executive Denis Orrock noting he will make sure the technology upgrade underway translates into stronger earnings and better returns for shareholders.
Further Reading
Cover Story

Advice with soul
SACHA BURCHGART
FOUNDER & MANAGING DIRECTOR
BURCHEART PTY LTD
FOUNDER & MANAGING DIRECTOR
BURCHEART PTY LTD
Though she initially tried, Sacha Burchgart couldn't escape the call of a career in financial advice; it just took staring down her own mortality to see what's possible when you do things differently. Jamie Williamson writes.









I am a 30 year risk specialist. With respect, this article is repeating the old shibboleth that because a risk policy is " old" it is , ipso facto, not "adequate " It ain't necessarily so. Take IP - in 1988 it was indeed bad - non-coterminous benefit periods, injury definitions designed never to pay for a crook "tradie's back", exclusions for injury involving a "material breach of law" and "plague limitations" on No 4 Statutory Funds. It started to improve in the 90's, and by the mid 2000s, was much improved under the influence of small innovative insurers, all since subsumed into larger insurers. Then insurers discovered they had not priced for claims under the improvements, so little delightful "improvements" such as Capability Clauses and Criminality Clauses were introduced.
Watch out, we are heading backwards, and once all the risk specialists depart under the glare of FASEA & LIF, the insurers will have a picnic with part -time risk advisers.
Trauma & Own Occupation TPD have improved, but if you want some fun, compare stroke definitions today. Severity still abounds in some stroke definition cases
Finally the best value an adviser can provide is at claim. Yet I am still alarmed at the number of holistic advisers who refer the potential claimant direct to the insurer and do not get involved. That is bad business practice, BUT it might also now be a breach of FASEA rules
I do agree a competent adviser review should pick issues with low ( or high ) sum insureds, incorrect beneficiaries etc but please read, and understand, the risk policy terms and conditions
Caring for my clients is and has always been my number one priority (as my business ethos prior to joining this industry and while I'm still a part of it is "look after your clients and the rest takes care of itself"). Sadly, my ability to now do that like I used to has been systematically eroded the last 3-4 years by ASIC's hidden agendas, LIF's constraints and diminishing adviser remuneration, over the top Best Interest Duty compliance obligations and the deceitful, conflicted ambitions of FASEA.
So with all due respect Tony, I'd love to care more for my clients but the regime advisers are currently dealing with makes it near impossible to do that now. And it just infuriates me.