The article “The Incumbent vs the Disruptor: How Much Has Changed?” published in the Asian Insurance Review dated September 2017 was an interesting read. It explores the idea of whether InsurTechs will replace face to face selling.
Based on the current offerings by InsurTech platforms in the insurance industry, Mr Poh, a Senior Financial Services Director with a financial advisory firm, shared that the degree of disruption is nominal. Most of the platforms offer little or no cost savings. He goes on to say that –
“Even those with savings, the fact remains that good financial planning comes from experience and advice from practitioners …. I believe there will always remain a class of consumers that will prefer to leave it to the professionals than do everything themselves.”
Unless one is willing to spend time and effort to self-educate and self-service, sound financial planning is not a DIY activity.
Jobs that require high level of social intelligence (like nurses, lawyers), high creativity level (like architects, interior designers) and high level of perception and manipulation of tasks (like doctors, dentists) have a low probability of being replaced.
Financial planners fall into the high social intelligence category and also overlap a little with the high creativity level category.
Jobs in the high social intelligence category involve a good deal of persuasion, negotiation, hand holding, care and empathy. Jobs requiring low social intelligence are almost all gone. It is interesting to observe that, increasingly, tied insurance agents also fear being ‘left behind’ and replaced by InsurTech if they do not upgrade to a comprehensive financial planning practice model.
Services delivered by a comprehensive FInancial Planner that cannot be automated:
A computer can drive the car or answer generic questions. But it can not have a human conversation with you. If you are currently not under the care of a comprehensive financial planner, let’s have a chat!