A message from
Fiona Navarro

Risk Specialist Network

This month sees Risk News focus on Critical Illness cover. The launch of MLC's Best Doctors Service, which provides a high value service to clients outside the realm of standard product features, has led Melanie Lord to examine more closely the additional services insurers provide which are not adequately captured or measured by research software. In addition Jon de Fries looks at the change to TPD premium treatment inside super as an issue which has been generating many questions.

Our Risk Retreat planning is well underway and you can expect your invitations during early December. We are planning a fantastic agenda with top quality speakers as the first priority, followed closely by social agenda. When you receive your invitation, please RSVP early, as we have limited capacity.

I would like to congratulate to the following South Australian advisers who were recognised in the recent South Australian Advice Solutions Excellence Awards.

As always, please let us know if there are particular issues you would like covered in Risk News.

Regards,

Fiona Navarro
National Manager - Protection Advice


 Insurance in Practice
By Jon de Fries

Change to the deductibility of TPD premiums in super

On 13 October 2009, the Minister for Superannuation issued a media release that backed the ATO’s long-held view that TPD insurance premiums are deductible only to the extent the policies have the necessary connection to a liability of a fund to provide permanent incapacity benefits and not other types of disability benefits.

"Disability superannuation benefits" are wholly deductible to the super fund trustee. Both the definition of "disability superannuation benefit" and "permanent incapacity" (the associated condition of release in the super legislation are aligned to the typical “any occupation” TPD definition available in the life insurance market.

This change will affect super funds that hold “own occupation” TPD insurance for their members. Whether large super funds will absorb the impact or pass the additional cost to their members remains to be seen. Read more…

 Research Solutions

Benefits not rated by the research houses

Research software provides valuable direction when placing risk insurance by providing both a premium and score rating. The main aim of these software tools is to assist the advisers in the recommendation of a risk provider.

Under S945A of the Corporations Act, an adviser has the responsibility to consider the client’s individual circumstances when recommending cover. This includes definitions which may be applicable to the client’s medical history and occupation, but also the client’s pastimes, as these can influence the recommendation and seriously affect the outcome of a claim.
Read more …


Best Practice Management
By The Risk Store & Harry Georges

Staring down the barrel of truth
By The Risk Store

Have you ever thought about the way our industry manages (or not) the emotional side of the claims process? I used to be as guilty as anyone of not thinking what it must be like for clients when they have to complete claim forms that bring them face-to-face with the raw truth of what is going on in their lives. Do we apply sufficient empathy in the claims management process, at insurer level, in recognition of that? Read more …

Using Best Doctors to drive a deeper emotional conversation about Critical Illness insurance
By Harry Georges

Harry Georges, Insurance BDM at MLC, talks to the Risk Specialist Network about how Best Doctors will change the nature of the advice conversation about Critical Illness Insurance.

Harry spent more than eight years as both an adviser and BDM in North America where he was heavily involved in the Best Doctors service. He is responsible for initiating MLC’s investigation into bringing this service to Australia and has been involved with the product design team.

We know that around half of all Australians will go through a critical illness. Yet despite this, Critical Illness still has the lowest uptake of all personal insurances.Read more ...


 Sales and Marketing
By Eleanor Hartman

Access Best Doctors for you and your family - special adviser offer

Until 24 December 2009, MLC is offering advisers who have an MLC adviser number, who do not currently have Critical Illness insurance for themselves, to take out Critical Illness Plus insurance with an ongoing 30% premium discount while receiving one year’s level commission payment. 
Note: The discount applies to the total premium for the relevant benefit.  If a premium loading has been applied to the benefit due to an underwriting assessment, the 30% discount will apply to the total premium after the loading.

Who can apply?
This offer is available for advisers who have a current MLC adviser number and do not currently hold a Critical Illness policy with MLC.
Note: This offer is not available for replacement of existing MLC business or increases to existing policies.

When is this offer available?
This offer is valid until 24 December 2009. MLC will accept applications signed and dated up until 24 December and received by MLC before 11 January 2010.
 
What insurance cover/product is this offer available to?
This is available to Critical Illness Plus (Standalone, as a Connected Benefit or as part of Life Cover) under MLC Personal Protection Portfolio.
Note: If Critical Illness is taken as part of Life Cover, the discount will also apply to the Life Cover if it is on the same policy.

How does the commission work?
There will be a 1 year level commission payment (with no ongoing commission). The commission payment will be based on the full premium amount prior to the special offer discount.
Note: MLC is assuming that the adviser is acting as their own financial adviser in relation to this cover.  This commission payment is made for the financial planning services that they will perform in relation to the application for cover.

By accepting this offer the adviser’s remuneration schedule is amended so that the terms set out in sections titled ‘Pricing and Commission’ and ‘Responsibility'.

 What's On?
Risk Specialist Network in the media

Risk Comes of Age
Independent Financial Advisor, 26/10/09, General News, Page 25
By: Fiona Navarro
 
Far from being a transaction where advisers provide product selection and implementation, insurance is rich with opportunities to add value to clients through advice. While forward-looking advisers have built their businesses around this proposition and actively lead with advice strategies for their own clients, many licensees are yet to catch up.

Taking succession to a higher level
Money Management, 27/08/09, General News, Page 32
By: Jon de Fries, MLC
 
A relatively small but growing number of advisers who have small to medium enterprises as part of their client base are offering business succession advice and facilitating an advice process that encompasses both planned succession events, such as retirement of a business principal or sale of a business, and unplanned events such as death, disablement or critical illness
of a business principal.

Dates for your diary
Business Insurance Workshops

Fast fact! The Risk Specialist Network two-day Intermediate Business Insurance Workshop can earn you up to 13 CE points!

For more information please email Andrew Nunn.