Brokers Olympia Andronicos and Leah Busby say they believe providing a full broking service means ensuring customers have a back-up plan to protect them in case of unexpected illnesses or death.
Choice Finance Specialists’ Andronicos (pictured above), based in Albury Wodonga, and Leah Busby, director at Blackfish Finance in Adelaide, both offer ALI’s My Protection Plan as an option for customers.
Andronicos said her 20-year background in banking made her aware of limited advice insurance products and the role they played in providing some customers with financial protection.
While customers would need to understand the difference between them and financial advice, Andronicos said the important thing was ensuring that finance customers thought about their back-up plan.
“It’s important to have a back-up plan – that’s the conversation I have with them,” she said. “It’s not about the product, but about having a back-up plan in place for if something unforeseen should happen – so it’s a conversation I have with every single one of our customers.”
Busby said the bigger picture in her business had always been about providing the same information for her clients that she would give someone in her family or her group of friends.
“Whether they are a first homebuyer, they are refinancing or they are an investor, customers are coming to us and saying, ‘this is what I want’, and we can do that and we help them do it,” said Busby.
“But I also thought that it was really important for everyone to understand what their options were when it comes to insurance as part of that bigger, broader picture.”
Andronicos said it presented an option that clients could then go and compare. “If they don’t have anything else in place it is easy and quick to implement for our customers,” she said.
“We are not saying it is the best solution for them, but it is a solution available and it is also easy to cancel – there is no lock-in contracts, so it’s very flexible in that sense.”
A natural part of the customer conversation
The ALI Group product has long been offered in conjunction with home loans to cover borrowers in the event that they are unable to meet financial obligations due to illness, injury or death.
Both brokers say they have integrated the conversation about a back-up plan into every customer’s journey, to ensure that all customers benefit from thinking about insurance protection options.
Andronicos said she raised it with customers as something to think about after providing them with finance options.
“We flag it from the beginning as something to think about, and when we go through the signing of loan contracts face-to-face, we go through the loan protection option at the same time,” she said.
“They don’t have to decide then – they can go away and think about it if they like – and they can even access the product up to settlement, or even after that if they want it.”
Busby said Blackfish’s systems tracked the entire customer journey from initial customer data collection all the way through, and she told customers at the beginning of the process.
This was in addition to Blackfish offering customers access to a wider suite of services within the business, including financial planning, accounting and conveyancing services.
“Once we provide the quote, and the loan is approved, at the stage where we go through the loan documentation and we ask for a clear yes or no answer on whether they want the product,” Busby said.
“We ensure every single client says yes or no – we shouldn’t assume that a client doesn’t need it or doesn’t want it – and we also then know it will be consistent data point in our system.”
Building brokers’ reputations for customer service
Andronicos said providing options such as insurance was important in terms of standing out from the crowd.
“This is what gives you reputation in a smaller town. Having a reputation for providing support and guidance is what makes us stand out from any other brokers, that care factor is paramount.
“We want to be known for thinking about everything customers may not have thought of and looking after them so they can sleep at night knowing they have made informed decisions.”
Andronicos said that with the added costs of travel and accommodation likely for those needing healthcare from Albury Wodonga, having the conversation provided protection for clients.
“For me it is about knowledge and education and making sure people are aware there are such policies out there,” she said. “They need to know – people don’t know what they don’t know.”
“If they have a conversation with mum and dad and they say they’ll be there for them, at least they know they’ve had that discussion – we are making sure that conversation happens.
“If they have insurance in their super, then that’s great – we encourage them to check it out. Although some think they have more protection there than they do.
“At least they have had the discussion and have decided on a back-up plan – as long as that thought process has happened then that is all I want.”
Do you have experience with – or are you planning to – offer limited advice loan protection insurance? Share your thoughts or stories on this topic in the comments section below.
