Article research and adviser perceptions

Over the years I have seen it suggested that you’ve covered the research and analysis aspect of the 6 step process for life insurance if you have a copy of the research used in the report in the client file.

Which is fine if you’ve read the document and actually used the research to give the advice.

However, the bastardised check the box compliance aspect with this is one of; do the QPR research, it goes on the file, and I do what I want anyway because I’ve got the research on file I’m golden.

Which isn’t necessarily true and this comes back to an article, shared on LinkedIn by Tony Vidler, from the Sydney Morning Herald about the environment in Australia. The article was discussing the pack mentality that comes from large groups of people narrowly focused on one thing or a limited number of things.

Now, this isn’t restricted just to Australia or Australian banks, but anywhere where there is a collective to reinforce you without the perspective of people with a differing opinion, as often happens within corporate environments. We had our own example of it here not so long ago with Youi and their sales practices.

And this is where the research piece, which is critical to the advice process, is somewhat getting lost.

Research isn’t the decision maker; for the consumer, a QPR report type approach is often going to give the consumer the best insight on a decision they can make by themselves.

However, when it comes to advisers and advice, a much higher standard is expected. We should be applying more than tick the box on research. The decision should be including our education, training, and experience, to mould the advice to the client needs. Brains in gear and it needs to be applied.

My point here is research is about supporting advice not driving it.

At the end of the day, your job as an adviser is to ascertain what the client need is, what their objectives are, and to employ an appropriate solution to meet those needs.

Research is helpful to ensure that you’re not blinded by your own bias, i.e. trip to some far-flung location as is often suggested or the more common, I’m used to that provider I know how they work, so I’ll use them.

It’s that familiarity that results in you overlooking the alternative solutions, which are in fact better for the client.