The nature of the role and deliverables expected from a financial advisor by an insurance company in Singapore will be different to some extent, depending on the job description and responsibilities assigned by the company.
There are, however, a few common responsibilities that most of the financial advisors operating within the insurance arena are expected to perform.
Duties of a Financial Advisor in Singapore
1. CRM – Client Relationship Management
Financial advisors are engaged in relationship building and maintenance with their clients. They meet potential clients to ascertain the goals and needs of each client, after which they provide them with appropriate insurance products. Meet with the clients to discuss the financial goals of each of them. This includes understanding their current financial situation, their short-term and long-term goals, and risk tolerance.
2. Financial Needs Analysis
MAS requires that Singapore Financial advisers carry out comprehensive analysis of the clients’ financial situations through a fact-finding process more popularly known as FNA. The financial advisor will ask information about income, expenses, assets, and liabilities in order to convey an idea about the needs of the client regarding insurance and to advise on insurance product openings. This covers an explanation about the type of investments, risks involved in each class of investment, and how investors can choose suitable investments for their needs.
3. Knowledge of Insurance Product
Financial advisors have to know insurance products from their company inside out, not just insurance products, but also investment products and retirement planning services. They should have thorough knowledge of policies, coverage alternatives, terms and conditions, and exclusions in order to provide information and advise clients correctly.
4. Sales and Business Development
They have to sell and achieve business goals. They proactively sell insurance, identify prospective clients, and do sales presentations. One may also show up at marketing events, network with potential customers, and employ various selling skills to win new clients.
5. Long-Term Financial Planning
These financial advisors assist their clients in the establishment of comprehensive financial plans. They analyze the clients’ current financial goals, risk tolerance, and time horizons to develop appropriate strategies for insurance that correspond with their objectives. Most of them might suggest a combination of insurance products to fully provide financial protection.
6. Client Education and Support
The financial advisor plays the prime role of educating the client about insurance concepts, policy features, and the need for financial protection. They iron out doubts of the clients, put their apprehensions to rest, and offer follow-up assistance during the tenure of the policy. They also facilitate guiding clients through the claims process, if any.
7. Compliance and Regulations
The monetary authority of Singapore has set out the code that the financial advisers in Singapore have to abide by, under the name Financial Advisors Act, and observe the standards of professionalism prescribed for conducting the activity relating to financial advisory services. They are supposed to be aware of new regulations and take necessary training; furthermore, they are supposed to keep all records of the communications with clients accurate.
8. Recruitment
Most of these financial advisors always depend on their professional networks to locate talented people who express interest in becoming agents. Such persons will be very instrumental during induction and training for new agents, ensuring that they are able to give appropriate advice, guidance, and mentorship to kick-starting their careers.
Skills of a Successful Financial Advisor
A financial adviser is supposed to be a source of guidance and experience in the somewhat overwhelming financial landscape that ‘exists’ today, with all its different investment alternatives. Their effectiveness is not based wholly on knowing the financial markets and their products, but rather on a multi-faceted set of skills highly attuned with the complexities of people’s finances and goals.
From astute financial analysis to empathetic client relationships, the blend of such skills forms the bedrock upon which successful financial advisors build their careers and forge enduring partnerships with their clients. Let’s delve deeper into the essential skills that distinguish a proficient financial advisor in today’s dynamic economic milieu:
1. Selling and Marketing Skills
They need to be able to promote their financial services, attract new clients, and establish a strong referral structure. The ability to simplify complex matters into understandable terms by all will help in establishing a rapport and trust relationship with the clients. Show active listening to understand the goals and concerns of the clients.
2. Financial Planning Competencies
They should be capable of evaluating any client’s existing financial status, preparing the right type of individualized financial plan, and monitoring such a plan over time. It means evaluating the financial situation clients face, associated risks, and opportunities.
3. Investment Analytical Skills
This, of course, encompasses researching various investment options as well as making recommendations that are commensurate with the individual client’s needs.
4. Communication Skills
This will involve explaining complicated financial issues in simple, understandable terms and establishing a good rapport with the clients. It’s a major strategy that helps in relationship building for long-term clients and referrals. It will range from regular communication, proactive advice to value-added services to make them feel special.
5. Technology Skills
This means using financial technology to deliver the best service possible to clients. The right technology allows the financial advisor to manage a number of clients and activities simultaneously, which requires effective time management to enable prioritization of activities so that deadlines are met and service is provided on time.
Best Practices for Meeting Insurance Clients
1. Accomplish a Proper (FNA)
The agent should meet the client for the first time to gather complete details from the client about his financial situation, protection needs, and investment goals. In this respect, they need to understand his income, expenses, liabilities, risk tolerance, and any pre-existing medical conditions. If the client has dependants, the agent needs to acquire information concerning the level of financial support needed for each dependent.
2. Unique Recommendations
In view of the information available during the FNA, the agent should recommend insurance and investment products that suit the goals of the client and the risk profile. Following that, they will have to clearly explain the benefits and risks of those recommended products apart from explaining the costs of premiums and/or possible fees. They can also highlight the possible consequences of early withdrawal or policy surrender.
3. Product Information Should Be Transparent
It is the agent’s responsibility to provide the client with clear documentation of the product recommended: FNA, policy illustrations, product summaries, and any disclosure forms necessary to show the product features, exclusions, charges, and risks.
4. Periodical Review of the Client’s Financial Circumstances
He or she must follow up on the sale with a client, periodically reviewing their policy or investment portfolio to help assure it continues to meet their needs. If his or her life changes, such as income or family structure, changes to their financial plan should be counseled by the agent.
5. The Professional Must Help The Client Understand the Terms and Conditions
The agents shall have to invest some time in explaining the different terms and conditions of their various products sold against their sale, such as applying any cancellation policy, free-look period, and so on, or any other important factor that could affect the decision-making process of the clients. All agents shall ensure that the clients are fully aware of their rights and responsibilities before investing.
6. Be There To Answer Questions and Provide Follow-up Support for Them
Then, agents will be available for clarifications needed after the initial meeting, especially if the client is not so sure or has other questions. Clients should be allowed to go elsewhere for consultation, perhaps for not feeling comfortable to make a decision on the spot, without any pressure.
7. Maintain Professional Integrity
They have to make sure that every recommendation provided is in the best interest of the client. In case the recommendation does not suit the needs of the client, the agent must give the client the option of an alternative thereof or give his freedom for the client to walk away with no pressure into buying it. The approach hence should be duly ethical and transparent.
8. Follow-up to Ensure Satisfaction
After the client has purchased a product, the agent should do follow-up with the client to ensure they are satisfied with their choice and that indeed the product will continue to serve the client’s needs. They may schedule periodic follow-up meetings to review changes in the client’s financial or personal circumstances that may affect their current or future needs.
They will give agents’ assurance that the products being presented to their clients serve their particulars in the conduct of ethical and professional standards, hence gaining their trust.
In gist, a point to note is that financial advisers in Singapore are obliged by law to have license and certification by the MAS. These licenses ensure that the financial planner possesses the competence and ethical level that is sufficient enough to sell insurance products and financial advice to a client.
In gist, a point to note is that financial advisers in Singapore are obliged by law to have license and certification by the MAS. These licenses ensure that the financial planner possesses the competence and ethical level that is sufficient enough to sell insurance products and financial advice to a client.
Financial advisory is one of the fields that keep on changing from time to time. You can achieve this through reading financial publications, attending industry conferences, and taking continuing education courses. If you are keen to pursue career as a financial advisor in Singapore, do feel free to reach out!
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
