Produced By: Ensombl
Financial advice spans a wide range of specialties—from investment and retirement planning to tax strategies and estate guidance. Yet one facet of advice often stands out for its complexity and the deeply personal impact it can have on clients: risk and insurance. In a recent conversation, James Wrigley, host of a financial-services podcast, spoke with Carlie Thatcher, an insurance-only adviser at MBS Insurance. Their exchange offered insights into how insurance-only advice functions in today’s market, the types of clients who seek these specialized services, and the role that ethics and professionalism play in delivering high-quality guidance.
Carlie’s journey illustrates a career devoted to placing clients’ protective needs at the forefront. Having worked in bank-affiliated advice channels and later in comprehensive advisory contexts, she has found her niche in focusing on personal and business insurance. The conversation highlights the importance of expertise, trust, and sound processes—particularly when clients require specialized guidance during some of their most vulnerable life moments.
Below, we delve into the key themes that arose in their discussion: the place of insurance-only advice within a broader financial planning system, the significance of thorough processes and data-gathering, how to identify gaps in coverage, the essential nature of claims experience, and the ethical considerations that inform an adviser’s recommendations.
While many clients look for a single comprehensive adviser who will handle all their financial needs—investments, superannuation, retirement, tax planning, and insurance—there has been a growing trend toward specialization. For a variety of reasons, many financial planners choose to refer the insurance component of advice to specialists like those at MBS Insurance.
Insurance can be a highly technical domain. Policies vary significantly in their terms, features, definitions (e.g., what constitutes a disability or critical illness), and pricing structures. Moreover, a client’s personal health, occupation, and family circumstances can greatly influence policy suitability. This level of detail can challenge even experienced advisers who handle all areas of financial advice. In many cases, focusing deeply on insurance alone can improve client outcomes because:
In the discussion, Carlie mentioned that her referrals often come from accountants, financial planners, and sometimes general insurance brokers who do not wish to handle life-risk products or who recognize that a specialist’s expertise is better for the client. By specializing in insurance-only advice, Carlie’s firm is effectively positioned to deliver recommendations on personal life insurance, total and permanent disability (TPD) cover, income protection, trauma or critical illness cover, as well as business covers like key-person insurance and buy-sell agreements.
From a professional and ethical standpoint, referral partnerships underscore a principle of acting in the best interest of the client. Rather than maintaining a suboptimal in-house service, advisers who know their limits opt to send clients to specialists—ensuring that those clients receive the best possible advice.
One of the strongest themes in Carlie’s approach is the emphasis on having a clear, step-by-step process. At the heart of this is respect for the client’s time, thorough information-gathering, and the ethical practice of ensuring clients fully understand the recommendations.
Early in any insurance-advice process, comprehensive fact-finding is critical. For Carlie’s team, it often begins when the referring practitioner (accountant or financial adviser) passes along foundational information: the client’s existing policies, loan balances, dependents, assets, and key financial priorities.
By the time Carlie reaches out to a prospective client, she already has a substantial grasp on that person’s circumstances. This speeds up the process and avoids repetitive, time-consuming questions for the client. During an initial phone call or meeting, Carlie may then verify or clarify details about the client’s:
Ethical Responsibility: An adviser has an obligation to make suitable recommendations, which hinges on complete and accurate client information. Rushing this step or failing to gather essential data can lead to inappropriate cover or claims denials later on. Thorough fact-finding is not simply a regulatory step, but also an ethical duty to safeguard client interests.
Clients often come with existing coverage. They may be unsure whether it is still suitable, or sometimes they simply want it canceled because of premium increases. Before making any recommendations, Carlie’s team gathers quotes, then compares the client’s current policy to alternative options across multiple insurers. Each policy is summarized in a simplified “market comparison” table, which breaks down premiums, benefit periods, waiting periods, and unique policy features.
Professional Accountability: Presenting these comparisons in an easy-to-read format demonstrates transparency. It helps the client see where their money is going, how different insurers measure up on cost and features, and why certain policies might be more beneficial. A side-by-side comparison ensures the client has the relevant data to make informed decisions, and it reduces the risk of conflicts of interest—an essential ethical concern.
Insurance premiums can mount significantly over time, particularly as clients age or as coverage levels remain static despite shifting needs. Many policyholders panic when they see a premium spike, especially if the policy’s deductions come out of their superannuation balance. The MBS approach involves illustrating how coverage can be scaled back or restructured to maintain affordability without sacrificing critical protection.
For instance:
Through these strategies, an ethical adviser remains client-centered, carefully aligning coverage with the client’s real needs while respecting budget constraints. Pushing a policy that’s too large and expensive would fail a best-interest test if the client can neither afford nor truly need that level of coverage.
Nothing underscores the significance of insurance more than a genuine claim situation. Carlie recounted how early in her career, she witnessed an income protection claim that was approved for a client who had a planned surgery shortly after taking out the policy. That success story highlighted the positive impact of coverage and confirmed for her why insurance advice is worth giving one’s all.
In the unfortunate event of a disability, critical illness, or death, an adviser’s role extends far beyond the initial recommendation. Supporting clients, or their beneficiaries, through the claim process is a tangible measure of an adviser’s professional and ethical standards.
Best practices at claim time can include:
This level of service is key to building trust. Ethically, it also acknowledges that clients are often distressed during a major health crisis or after a family tragedy. They require not only coverage, but also empathy and hands-on assistance.
Professional advisers often use claims data or experiences to refine their advice processes. Observing how certain policy features are interpreted or how definitions come into play helps identify which insurers handle claims more efficiently and which contractual wordings are more beneficial to clients. Over time, such experience can steer future recommendations more effectively and responsibly.
Beyond personal insurance, Carlie also deals with businesses in need of specialized coverage. Two common areas include buy-sell insurance and key-person insurance. Both require a deep understanding of business structures, partnership agreements, and the legal frameworks governing ownership transfers.
A buy-sell agreement ensures that if a business owner dies or becomes permanently disabled, their stake can be sold or purchased by the remaining partners rather than passing to the estate or family members who may not want to be involved. Insurance policies underpin these agreements, providing a lump sum so that the remaining partner(s) has the financial wherewithal to buy out the disabled or deceased co-owner’s share.
Professionalism and Ethics:
A key-person insurance policy protects the business from financial fallout if a pivotal employee or principal were to die or become disabled. For instance, a star salesperson or a founder with specialized technical knowledge might be irreplaceable in the short term. Key-person policies inject capital into the business to cover revenue loss or recruitment costs during the transition.
In Carlie’s view, many businesses mistakenly think they have coverage aligned with their buy-sell agreements or key-person considerations, only to discover that policy ownership or coverage amounts are incorrect when they actually need to rely on them. Identifying these issues proactively is both a professional best practice and an ethical imperative to prevent financial disaster later.
A common challenge in financial advice circles is maintaining consistent follow-up with clients. It is not enough to set up a policy and leave the client to navigate rising premiums or changed circumstances. Best practice dictates an annual or regular review to confirm:
With large volumes of business, MBS Insurance and similar firms deploy centralized systems that track key policy renewal dates. Automated reminders can prompt advisers to contact clients about premium changes or upcoming policy anniversaries. From an ethical perspective, these systems enhance accountability: advisers are less likely to overlook policyholders who might otherwise drop their coverage because of cost or inertia.
Premium “shock” can drive clients to hastily cancel vital coverage. A robust review process, on the other hand, offers an opportunity to look at rebalancing the coverage, comparing policies, or changing waiting and benefit periods. The adviser’s responsibility is to ensure that a client does not lose essential protection without fully understanding the consequences.
Beyond day-to-day practices, insurance-only advisers must navigate ethical guidelines and industry regulations. These set standards not just for how advice is delivered, but also for how advisers manage conflicts of interest and how they address disclosure obligations.
Many jurisdictions have professional codes of conduct that financial advisers must follow, stipulating principles such as integrity, objectivity, competence, confidentiality, and diligence. These codes also emphasize putting the client’s best interest first—a cornerstone of ethical insurance advice.
In many regions, advisers are bound by a legal “best interest duty,” meaning that every step of the advice process must be demonstrably aimed at benefiting the client, rather than serving the adviser’s convenience or profit. Carlie’s approach to preparing market comparisons, clarifying coverage gaps, and collaborating with legal and accounting professionals reflects a structured method to fulfill this duty.
Since insurance advice often involves commissions, advisers must maintain robust protocols for managing potential conflicts. Full disclosure of fees and commissions, along with a willingness to show clients quotes or competitor offerings, can mitigate perceived conflicts. The emphasis on facilitating coverage that genuinely serves the client—even if it sometimes means reducing existing coverage—reinforces ethical standards over self-interest.
A unique aspect of insurance advice is the profound impact it has on individuals, families, and businesses during times of crisis. Whether it is a disability claim that allows a family to keep their home, or a life-insurance payout that ensures a grieving partner can manage financially, the human side of the process is undeniable. Many advisers, like Carlie, derive professional fulfillment from helping clients avert catastrophic losses and navigate the claims process with peace of mind.
During the discussion, Carlie mentioned a recent trauma claim that enabled a client to take the necessary time off to recover. Making that phone call to inform the client they could rest without immediate financial worries is a career highlight that underscores why insurance advisers often remain committed to this specialization.
Focusing on client well-being inevitably fosters trust, which in turn leads to more referrals. Clients who experience a seamless or supportive claims process are likely to recommend their adviser to friends, family, and colleagues. In a profession built on reputation, ethical conduct and professionalism translate directly into growth and sustainability for the business.
Even though changes to regulations and the introduction of more stringent compliance requirements have driven some advisers away from risk advice, insurance-only specialists who double down on expertise, systems, and client care are finding success. MBS Insurance, for example, has expanded into multiple cities across Australia, serving personal and business-insurance clients at scale.
The insurance landscape is continually evolving. From changes in income protection product definitions to heightened scrutiny on adviser education and qualifications, specialists must keep pace through ongoing professional development. Ensuring they adhere to new regulations, such as adjusted commission caps or additional disclosures, underpins both ethical practices and long-term viability.
As automation and digital tools advance, advisers can serve a broader client base with greater efficiency. Online portals allow clients to update personal or business details, prompting timely reviews and ensuring coverage remains fit for purpose. Technology also eases compliance by making recordkeeping more robust and transparent.
Looking ahead, insurance-only advisers are likely to deepen their relationships with comprehensive financial planners, accountants, legal practitioners, and mortgage brokers. Rather than viewing other advisers as competition, professionals like Carlie embrace collaboration. This synergy improves client outcomes and drives each specialist to excel ethically, knowing that reputation and accountability are at stake.
Taking a step back from the specifics of Carlie’s story and James’s questions, several broad lessons can be drawn for anyone delivering—or receiving—insurance advice:
Insurance-only advisers like Carlie Thatcher embody a specialized focus within the broader financial advice profession. They witness firsthand the profound difference insurance can make when life takes unexpected turns—whether protecting a family from financial hardship or ensuring a business survives the loss of a key individual.
Professionalism in this arena means more than just checking compliance boxes. It involves adopting a client-centric mindset, striving for clarity and thoroughness in fact-finding, and advocating for the client’s best interest at every step. Ethics similarly underpins every part of the process: from fair disclosure of costs and commissions to partnering with other professionals when a matter extends beyond one’s expertise.
When executed with care, skill, and integrity, insurance advice stands as a protective shield for families and businesses. Thanks to specialists who dedicate their careers to this facet of financial services, clients can confidently navigate the complexities of policy structures, coverage features, and underwriting. And while many insurers and regulations continue to reshape the environment, the fundamental ethical commitment—to recommend genuinely suitable coverage, at a sustainable cost, and to be present at claim time—endures.
Carlie’s perspective, as highlighted in James Wrigley’s podcast, underscores not only the mechanics of insurance advice but also the personal satisfaction that comes from doing the right thing. Ultimately, this is what sets professional advisers apart: they combine technical knowledge with a deep sense of responsibility for their clients’ well-being. In a world where unexpected challenges arise daily, having a trusted advocate to guide critical insurance decisions can make all the difference—both financially and emotionally.
Accreditation Points Allocation:
0.20 Technical Competence
0.10 Client Care and Practice
0.10 Professionalism and Ethics
0.40 Total CPD Points