Broaden advice without ‘diluting’ risk, says AIA

Speaking on the sidelines at its 4490 Summit, AIA Australia and New Zealand chief executive Damien Mu told Risk Adviser that it’s important for risk advisers to be able to have a conversation with clients about their broader financial needs, such as health insurance or investments.

But he added that he hopes that risk advisers can continue to be exclusively focused on risk.

“I think life risk specialisation is really important because that's an important component of any financial protection plan, but if we were to dilute that focus I think that would be an unintended outcome that would have detrimental impact to society as a whole,” Mr Mu said.

“But if life can be the core proposition with other services and products attached to that, I think it's a win-win for the client and the adviser.”

Mr Mu also said he thinks more insurers will follow in creating combined health and life insurance offerings for customers.

“I think it's going to be a trend in the future. We've got to make it easier for people … and be able to have a relationship with customers early on in their life and not when something bad happens,” he said.

“In other parts of the world, life and health are combined. You can get your life and health insurance from the one place, and you're treated as the one customer, and it makes it nice and easy.”

Earlier this month, AIA Australia revealed the non-aligned licensees that will take part in the pilot phase of the myOwn brand.

Dealer groups Bombora Advice, Synchron, Aon, Sentry Group, Sentinel Private Wealth and Integrity Financial Planners will take part in the initial three-month launch, starting from 10 July.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].