The future of risk advisors

Strategem advisor, Adam Middlemis, specialises in insurance.

Insurance risk advisors play a crucial role in the insurance industry by providing expert guidance and strategic advice to individuals and businesses.

Unfortunately, premium increases and changes to commission structures have left risk advisors at risk of extinction with less than 1% of Australia’s 16,000 Advisors specialising in risk insurance.

What is risk insurance

When we refer to risk insurance, we are referring to more than just life insurance. In most cases, an individual will through some means have life insurance, however life insurance is not the only line of protection.

When we think about insurance, it often forces us to look at things from ‘the worst case scenario’ or ‘that won’t happen to me’ situations. It’s really an expense that we hope to never need.

• Life insurance

• Trauma Insurance

• Total and permanent disability insurance

• Income Protection Insurance

It’s about protecting you and your family in the case of the unexpected happening.

With so many types of insurance, this is where engaging with a specialised insurance risk advisor can be beneficial.

Here are some key reasons highlighting the importance of insurance risk advisors:

1. Risk Assessment and Mitigation: Insurance risk advisors have the expertise to assess potential risks faced by clients and help them mitigate those risks effectively. They analyse various factors such as industry trends, market conditions, and regulatory changes to identify potential threats and develop strategies to minimize exposure to risk. By conducting comprehensive risk assessments, advisors ensure that clients have the right insurance coverage and risk management strategies in place.

2. Tailored Insurance Solutions: Insurance risk advisors understand that every client has unique needs and requirements. They work closely with clients to understand their specific circumstances and develop customized insurance solutions. By tailoring coverage to address individual risks and objectives, risk advisors help clients optimize their insurance portfolios and ensure adequate protection against potential losses.

3. Industry Knowledge and Expertise: Insurance is a complex field, and the landscape is constantly evolving. Insurance risk advisors possess in-depth knowledge of the industry, including market trends, regulatory changes, and emerging risks. They stay updated on the latest developments and leverage their expertise to guide clients in making informed decisions. By tapping into their knowledge and experience, clients can benefit from accurate risk assessments, appropriate coverage recommendations, and proactive risk management strategies.

4. Claims Management and Advocacy: In the event of a claim, insurance risk advisors serve as advocates for their clients. They facilitate the claims process, ensuring that clients receive fair and timely settlements. Risk advisors understand the complexities of insurance policies and can navigate the claims process more efficiently, saving clients time and frustration. Their support and expertise help clients maximize their claims and recover from losses effectively.

5. Risk Education and Awareness: Insurance risk advisors also play a critical role in educating clients about risk management. They help clients understand their exposures, potential liabilities, and available risk mitigation strategies. By raising awareness and providing risk education, risk advisors empower clients to make informed decisions and take proactive measures to protect their assets and financial well-being.

6. Long-Term Relationship Building: Insurance risk advisors focus on building long-term relationships with their clients. They take the time to understand clients' evolving needs and objectives, ensuring that insurance coverage and risk management strategies adapt accordingly. By maintaining ongoing communication and providing continuous support, risk advisors become trusted advisors who clients can rely on for guidance and assistance throughout their insurance journey.

Insurance risk advisors bring a wealth of knowledge, expertise, and personalised service to the insurance industry. Their role in assessing risks, tailoring insurance solutions, advocating for clients, and providing ongoing support is invaluable in helping individuals and businesses navigate the complex world of insurance and protect their assets effectively.

At Strategem we believe in giving our staff the opportunities to maintain a high level of expertise in their given fields. By taking part in regular training and development, our staff are up to date with legislation and policy changes and key trends and have a wealth of experience to be able to give you the most accurate advice for your individual situation.

If you’re interested in reviewing your insurance policies to see if they still meet your families needs, or are interested in setting up insurance policies to protect yourself, please contact our Insurance Specialist, Adam Middlemis for a free, no obligation conversation.

We are here to help

If you need further advice on this topic, please do not hesitate to contact our office on (03) 5445 4666 and one of our Accountants will be available to support you.