Think Tank: Generalist approach needed to compete with consultants
Advisers must prove their value to the sales process if they are not to become an endangered species. According to guests at a recent COVER Think Tank, increased red tape and the rise of generalist employee benefits consultants could force many advisers out of the market.
Speaking at the debate, Peter Elliott, group corporate director at the Jelf Group, said those working in the group private medical insurance (PMI) market face increased threats from employee benefit consultants advising companies on health risk and strategy.
"In the future, advisers will have to demonstrate value. That is the biggest challenge going forward, particularly in the larger market where it is less commonplace to deal with advisers. Disclosure is coming, and people will struggle to prove their worth and keep their profit margins," he said. To tackle this, advisers will have to become more generalist in all aspects of healthcare insurance.
"Many advisers will have specialist knowledge but we have to become more generalist. Insurers are taking a more proactive approach towards client relationship management. Advisers have to take a similar approach," said Elliott Hurst, healthcare and risk consultant at Watson Wyatt. While guests agreed that a more generalist approach was needed if the majority of advisers are to survive and grow their business, current indications show that there is certainly a trend towards this direction at the moment.
Damian Lenihan, national sales manager, key intermediaries at BUPA, said: "Certainly, from BUPA's point of view, the intermediary market has become very competitive. Those with a protection account are trying to expand into PMI, and I think this is likely to continue," he said.
nFor full details of the round table debate, please see the Think Tank supplement free with this issue.
