The role of the specialist insurance adviser is not disappearing but it is evolving, says Financial Advice NZ, which points to advisers being risk management professionals, “someone who helps clients understand the financial consequences of life events and make deliberate decisions about protection.”
It says that a risk-first framework changes the sequence of advice. “Rather than beginning with products, advisers begin with prioritisation.”
The organisation has outlined for RiskinfoNZ how, for decades, high-quality insurance advice has been defined by deep product knowledge, field underwriting precision, and the ability to navigate complex policy definitions across multiple insurers.
“That expertise remains essential, particularly for advisers working across life, disability, and health insurance products. What has changed is the environment in which that expertise is delivered.”
It notes that the FMA’s 2022 Consumer Experience with the Financial Sector Survey found that only 27% of Kiwi’s use a financial adviser as their main source of advice for life insurance and even then, they are triangulating this with digital sources.
“Today’s clients can access online calculators, compare policy features, and research cover amounts in minutes. Many arrive at meetings feeling informed or at least confident in their understanding. The technical barriers that once clearly differentiated professional insurance advice are no longer as visible.”
…this shift does not diminish the importance of product knowledge. It changes where advisers demonstrate their value…
Financial Advice NZ says this shift does not diminish the importance of product knowledge. It changes where advisers demonstrate their value.
“In response to this evolving landscape, Financial Advice New Zealand’s member advisory committee has developed Risk Management Advice for the Modern Financial Adviser, a specialist masterclass forming part of the National Adviser Conference 2026 programme (see: National Adviser Conference Update).
“The masterclass addresses a central question facing insurance advisers: how to remain relevant and demonstrate professional judgement beyond product comparisons?”
From Product Expert to Risk Professional
The organisation says that traditional insurance advice has often followed a product-first sequence:
- Identify a gap
- Calculate a shortfall
- Compare features
- And recommend a solution
“That process still matters. However, experience shows that clients rarely make decisions based purely on rational calculation. Behavioural research consistently demonstrates that people discount long-term risk, overestimate positive outcomes, and avoid confronting uncomfortable scenarios. This helps explain delayed decisions, stalled implementations, and conversations that gravitate toward price.
“The issue is not a lack of product expertise. It is often a question of framing.”
The masterclass explores how advisers can strengthen implementation and client commitment by shifting toward structured, risk-first conversations.
…a risk-first framework changes the sequence of advice…
A Risk-First Approach
Financial Advice NZ says a risk-first framework changes the sequence of advice. Rather than beginning with products, advisers begin with prioritisation:
- Which risks would cause the greatest long-term financial damage?
- How resilient is the household cashflow?
- What trade-offs matter most to this family?
“This approach moves the conversation beyond sums insured and into context such as family dynamics, future plans, financial interdependencies, and long-term intention.
“When risk is clearly prioritised, product selection becomes more powerful, not less. Technical expertise is applied within a visible strategic structure. Clients understand not only what they are buying, but why it matters.”
Financial Advice NZ says that anchoring advice in structured risk analysis and long-term financial impact also strengthens defensibility.
“Advice framed around prioritised risk and cashflow modelling provides a clearer rationale than product comparison alone.”
Evolving Without Abandoning Expertise
It says that discussions about AI and digital tools sometimes create the impression that embracing change means diminishing the importance of technical knowledge.
“It does not. Strong product expertise remains a foundational competence. Definitions, exclusions, offsets, premium structures, and insurer differences still matter and in a complex product environment, they matter greatly.”
…what is evolving is how that expertise is positioned…
The organisation says what is evolving is how that expertise is positioned.
“The modern insurance adviser is not simply a product selector. They are a risk management professional, someone who helps clients understand the financial consequences of life events and make deliberate decisions about protection.
“Technology can assist with calculation. It cannot replace judgement, behavioural insight, or structured thinking.”
Financial Advice NZ says that the masterclass, which has been developed as part of its broader commitment to supporting professional capability, is designed to help the modern insurance adviser adopt their client value proposition.
“The profession is evolving. Those who combine strong technical competence with structured risk conversations will not lose relevance. They will strengthen it.”
Click here to see the full conference information and registration details.