Technological advances impacting a financial adviser’s approach

CHRISMAN LOUW Head: Product Development, PPS

reputable financial adviser uses their knowledge and expertise to provide clients with constructive advice to help them meet their financial goals. This is done by developing personalised financial plans underpinned by targeted savings, investments, insurance and tax strategies. It also requires the adviser to regularly check in with clients at different life stages and when life events such as divorce or marriage trigger the need for reevaluation. Having the right tools is critical.

The fourth industrial revolution saw businesses gradually introduce digital models, not only to stay relevant, but to also revolutionise the way they interact with customers. However, COVID-19 accelerated this digital take-up and has emerged as a significant game-changer to achieve sustained operational excellence. Chrisman Louw, Head of Product Development at PPS, provides some views on how digitalisation impacts the world of an adviser post COVID-19 in the insurance industry, and how advisers can ensure they keep ahead of the pack.

Face-to-face versus virtual meetings

Digital interaction has become the new normal in business practice as we navigate the restrictions placed on physical interaction. Programs such as Microsoft Teams, Skype, Google Hangouts or Zoom have seen a sharp increase in usage to manage client queries and expectations. COVID-19 certainly forced insurance companies to come up with digitally-enabled application processes in order to stay relevant in the life of an adviser.

Moving from paper to fully digital applications

Prior to COVID-19, the norm was for advisers to personally run through application forms with clients. Going forward, the adviser’s role will change as a shift towards digital application platforms

are expected to emerge. Advisers have a certain level of control over administrative processes in a paper-based world. Digital platforms, and more widely used tele-underwriting techniques as a means to gather information from clients, are forcing advisers to trust life insurance companies’ fulfilment processes more.

Electronic signatures are increasingly being used to validate applications and claim forms. Medical tests for life insurance applications may be supplemented with appropriately consented use ofhistorical medical records to remove the administrative burden of repeated tests. This has the potential to reduce the turnaround time for an offer of insurance.

DIGITAL INTERACTION HAS BECOME THE NEW NORMAL IN BUSINESS PRACTICE

Digital claims

Automation for life insurance claims will not only be the wave of the future, but a client expectation. Clients prefer to use technology platforms to interact with their insurance company rather than speaking on the phone. With this said, technology is also enforcing insurance companies to change the way claims are submitted through digital means, resulting in better customer experience and improving operational excellence.

PPS as the differentiator

Advisers and insurers need to embrace digital innovation as part of their futurefit business model. PPS is looking at introducing digital application forms and automated underwriting systems that are supplemented by the use of existing member records.

PPS is an authorised financial services provider.