Face-to-face risk advice still key, Asteron says

In a report titled Life's Attitude to Life Adviser Insights, Asteron said while consumers are increasingly using the internet to begin their life insurance research, most still prefer to speak with an adviser before purchasing a policy.

"As more Australians move online to research and match their needs, there is, and will continue to be, a need for personalised and professional advice," said Asteron Life executive manager, Mark Vilo.

"It's essential for advisers to have an online presence and be seen where your clients are researching. By factoring this into your business strategy and the way you provide your service, you can use the power of the internet to help grow your business."

The report also shows that Generation X consumers are more likely to have life insurance cover greater than $1 million. This may be attributed to the fact that they are entering their 40s, which is typically a higher financial risk age group, Asteron said.

Meanwhile, Baby Boomers were shown to be "very regular users" of financial advisers, primarily because they are planning for retirement, the report said.

About 21 per cent of Generation Y consumers saw a financial adviser regularly, but are generally considered to be "early adopters", providing an opportunity for advisers to engage this segment by establishing relationships and tailoring advice.

"Understanding the generational needs of your clients will facilitate meaningful conversations around their individual needs. It's a good idea to segment your client base according to a combination of risk, income, generation and life stage and build this into discussions," Mr Vilo said.

"Clients are your strongest advocates to people that you may otherwise have no contact with as they can talk to the value of insurance but also you individually," he added. "With fewer than half of Australians regularly seeing an adviser, there is a huge potential market yet to be explored."