MBS are excited at the prospect of delivering better insurance outcomes to clients of Macquarie Private Bank, providing a service and expertise to which they are accustomed, and one that is aligned with your offering.
We believe we are the right firm to deliver insurance advice and ongoing portfolio management to your clients in a collaborative approach with your team. Wealth creation is clearly the cornerstone of your proposition. It is imperative to overlay your wealth creation strategy with the necessary wealth protection strategy. MBS can provide a level of expertise, access and specialised advice to complete the Macquarie Private Bank proposition.
Macquarie Private Bank’s client base is compatible with MBS’ existing operations and will complement our continued endeavour to deliver better outcomes to clients, facilitated by our scale. These better outcomes manifest in:
discounted insurance products
retention discounts to existing policy holders
health loading discounts
dedicated underwriting
dedicated claims management
With a National infrastructure, MBS would establish a dedicated team to work with the Private Bank. This provides an opportunity to develop connectivity and consistency in the client experience. We would want to work with you on an induction for our team, to enhance the complementary nature of the offering, values and service standards your clients have come to expect.
We propose a National delivery to the Macquarie Private Bank business, clients and team, rather than reside on a preferred panel. It is our view that this will lead to significantly better outcomes across all stakeholders. This approach would provide the opportunity for our two businesses to define the process for:
~1,000 insurance-only clients
existing clients with policies under management
existing clients who may not have been adequately offered the opportunity
onboarding new clients to Macquarie Private Bank
The process would be known and documented for your front-of-house team, advisers and management. We would establish the connectivity and discipline required to integrate our offering at the level desired by Macquarie Private Bank. This may include coordinating the timing across the four bullet points above. For instance, it may be the case that the insurance only clients are not as engaged, or they may not have received advice in recent times. Rob, we also spoke of our experience working with institutions and the need for the appropriate messaging to your clients. We will expect materially better outcomes for your clients by way of discounts, preferential underwriting and claims management. This will be compounded, should the commercial arrangement between our firms be directly passed on to the client.
Our scale, relative to the market, has provided us the opportunities to deliver better outcomes at the front end (i.e.: policy terms and pricing) as well as claims management, which is often when expertise and specialised delivery is called upon. This pursuit will not cease as we continue to build our offering.
Recognising the Need for Quality Advice and Ongoing Portfolio Management
With respect to Macquarie Private Bank, we believe this need exists at a client, adviser, and business level.
Client Requirement
It is important that insurance advice remains appropriate, necessary, and reviewed (not set and forget). Life insurance, total and permanent disablement, trauma insurance, income protection insurance, key person insurance, buy/sell insurance products are all designed to protect wealth. As such, insurance should be viewed as hedging (protecting the downside) and complementing the wealth creation strategy.
Not all clients of Macquarie Private Bank will require advice, however many will require advice that is tailored to their needs. It is this advice that requires the specialist knowledge of the client (Macquarie Private Bank), the appropriate insurance strategy and access to products and pricing that is not available to the wider market (MBS). Clients will vary from executives, to wealth accumulators, those with gearing strategies, self-employed clients and family groups looking to attain intergenerational advice. As MBS has not marketed to the public, this is the client group that we retain, and have great experience in managing.
Heath raised the query of the client journey and process. While I have touched on above (ease of experience), I wish to reinforce that part of our role is to make the experience seamless and painless for the client. The insurance that we specialise in does not have a call to action date (unlike general insurance) and, largely, clients are not eager to spend significant amounts of time moving through the process. This presents a risk that the client or business is exposed in the event the client suffers a health event prior to the cover being incepted. Our process has been continuously refined to ensure the right advice is underpinned by a streamlined process for the betterment of the client. This is aided by our business to business DNA and scaled access to preferential treatment across the insurance landscape.
Adviser Requirement
I recognise the reality that some advisers within the bank enjoy the insurance revenue, however I suspect that most retain an investment focus as their core expertise. Our offering would not merely remove the insurance requirement from your advisers, but would also enhance the client engagement. They should expect an entirely different outcome for their clients with our preferential underwriting, significant ongoing premium discounts and, in effect, an insurance concierge at their disposal, designed to strengthen their relationship with their clients. Our advisers, para planners and client services teams will operate under a lens that your advisers are key clients of our firm.
Business Requirement
Circling back to my remark that compliance is both procedural and behavioural, the comments from you both, and other members of the Private Bank team, indicate that insurance is sometimes avoided, or is not addressed, with the same level of attention as other core services provided. Exposure can reside in many forms beyond not raising the need, such as:
policies left inside (external) super funds that incur changes in definitions, loss of cover due to inactive accounts or insufficient balances;
an inefficient process leading to an extended application and underwriting process that sees cover not finalised;
Advice implemented on substandard terms: outdated advice/strategy and closed retail contracts resulting from infrequent policy reviews or adverse claims outcomes.
Setting aside the compliance and exposure component, we wish to establish a client delivery that is aligned with the expertise and excellence Macquarie Private Bank clients receive across your business. The ‘champagne before take-off’ experience.
Thank you for allowing MBS to present our proposal. Please contact us if you require any further information.
Any advice in this site is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. © MBS Insurance is a Corporate Authorised Representative of Bombora Advice Pty Ltd AFSL 439065