Don’t be afraid of risk, says aggregator

“The opportunity is two-fold,” he said. “If a broker has the competency to take on the requirements and do financial planning, and wants to provide risk insurance as well – that’s fine.

“However, if a broker may want to offer risk insurance but doesn’t want to complete the necessary qualifications and requirements for it, there’s no reason why they simply can’t refer it.

“Either way, they are still satisfying the requirement for their customer by at least asking the question.”

Mr Paratore said risk insurance is something that brokers should be embracing.

“Offering risk insurance as a broker increases your ability to attract and retain clients, without a doubt,” he said.

“It’s a model that banks have been using for years – multiple products and services for the one customer.

“Brokers don’t have to be the jack of all trades – they can simply refer customers to a financial planner or group like Ballast that provides the services required for them.”

Mr Paratore said brokers should not be pushing risk insurance, rather it should be presented naturally within the suite of what they are offering.

“You’re looking for a commitment on a home loan, and one of the natural questions following it should be ‘What if?’ It’s the broker’s obligation to turn around and ask the customer that question,” he said.

“If the customer’s not interested in anything to do with risk insurance, the broker at least knows that they’ve satisfied their obligation of asking the question.”

[Related: Selling insurance is all about timing, says award-winning broker]