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Clients turn away from wellbeing programs

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Advice clients are not taking up health and wellbeing programs associated with their life insurance policies, according to an Investment Trends report.

Life insurers have introduced such initiatives to help advisers build relationships with clients and to reduce premiums, but only 10% of clients use the programs, the industry analyst says.

About 30% of advisers say health and wellbeing programs are not important when recommending insurance products, while 38% say they are.

“There is a significant opportunity to bridge the gap between the perceived benefits and value of these programs for both clients and planners,” Senior Analyst King Loong Choi said.

Adviser satisfaction with insurers remains high, with 48% rating their insurer as “very good”.

For the second consecutive year, ClearView ranks first for overall satisfaction in Investment Trends’ Planner Risk Report, followed by AIA Australia and TAL. Planners derive 25% of practice revenue from life advice, down from 32% three years ago, the report says.