Financial planners not sold on wellness programs

Not all financial advisers are sold on the importance of health and wellbeing products when recommending insurance products, new research has found.

The research house Investment Trends has released the results of its 2018 Planner Risk Report, which surveyed 495 financial advisers that provided advice on life insurance.

According to the survey research, adviser revenue generated from risk advice had declined in the last three years, falling from 32 per cent in 2015 to 25 per cent.

This was pushing more advisers towards insurance providers "to alleviate the triple challenge of admin, compliance and heightened regulation, and at the same time, help them build stronger and longer lasting client relationships," Investment Trends senior analyst King Loong Choi said in a statement.

As a result, many insurers had created new health and wellbeing initiatives, with a "majority" of advisers understanding the value of such programs for clients.

"In particular, the benefits planners see for their clients are policy discounts, encouraging them to prioritise their health, and giving them the ability to influence their premiums," Mr Choi said.

But only one in ten clients were taking advantage of these health programs, research showed.

"The planner population is divided on the importance of health and wellbeing programs when recommending insurance products, as 38 per cent say it is important while 30 per cent say it isn't.

"This suggests there is a significant opportunity for insurers to bridge the gap between the perceived benefits and value of these programs for both clients and planners."