Insurance products are complex, which is why the service that insurance advisers provide is so valuable when you are considering what cover you need.
Advisers can assess your needs and decide which cover is right for you, help you complete your application, advocate on your behalf with insurance companies and assist you in making a claim. They can also reassess your needs over time as things change.
Here are some questions to ask when you’re selecting an adviser:
- What type of advice do you give?
- What insurance providers are you aligned with?
- Do the products you sell suit my needs?
- Can you advise on any products that I already have?
All advisers have a legal responsibility to act with care, diligence and skill. They must not mislead, deceive or confuse their clients. And they must be registered on the Financial Service Providers Register.
An adviser’s licence will set out the types of products and services they are able to offer. A Registered Financial Adviser is qualified to give advice on products like mortgages and insurance. They must be registered but they don’t need be authorised by the Financial Markets Authority.
Authorised Financial Advisers can advise on the same products as Registered Financial Advisers, as well as investment products, including Kiwisaver. All Authorised Financial Advisers must comply with a Code of Professional Conduct Code and need to meet minimum standards for competence, knowledge and skills, client care, ethical behaviour and ongoing professional training.
A Qualified Financial Entity Adviser can advise you on the same products as Authorised Financial Advisers if those products are provided by the company they represent.
Many advisers work on commission but some may charge a fee, depending on the complexity of your needs, so it’s a good idea to talk to them and make sure you know what’s expected. Insurance companies will pay them a percentage of your premium.
You can use our online tool to find an adviser near you: https://www.sovereign.co.nz/Personal-Insurance/Pages/default.aspx
Here is a video explaining the role of advisers