Rabo Financial Advisors strengthens its insurance offering to the rural sector

5 May 2008

Rabo Financial Advisors (RFA) – the specialist financial planning subsidiary of major rural lender Rabobank – has moved to further deepen its knowledge of the needs of primary producers and regional businesses in the area of personal risk insurance.

RFA commissioned leading research group DEXX&R to conduct a full review of insurance offerings for the rural and regional sector, with the aim to find providers who could service the unique needs of farmers and regional businesses and who recognised the difficulties often faced in meeting underwriting requirements.

Head of Rabo Financial Advisors Colin Williams says underinsurance is a major issue throughout Australia and the key factors which result in underinsurance nationally are often magnified in the non- metropolitan areas. Some of the factors contributing to underinsurance in rural Australia are a lack of medical services in remote communities creating difficulties in obtaining medical tests required for insurance policies, and a lack of flexibility in the underwriting processes of many of the major insurance providers, Mr Williams noted.

“RFA has been focussing on the provision of suitable insurance of its rural and regional clients, and their city counterparts, for some time. It has always been a challenge to find providers who can not only play a role in both sectors, but are willing to be progressive rather than defensive underwriters,” he said.

As a result of the successful completion of the survey, Mr Williams said, RFA had been able to impress upon the successful firms the need for a consultative and broader approach to the underwriting process as well as a higher level of training for staff in the field so any potential issues are recognised early in the process.

Managing Director of DEXX&R Mark Kachor headed up the review project on behalf of RFA and is delighted with the results.

“There is a real need for the large insurance providers to understand the issues in the primary production sector and regional/rural small businesses. Many focus firmly on the professional/blue collar workforce with the primary production sector somewhat neglected. With RFA now positioned to work much more closely with the insurance underwriters, they can help forge closer ties to this market,” he said. “I am delighted to be working with such a progressive company.”

Whilst RFA will maintain existing relationships where appropriate, they are looking forward to building a strong footprint with the three core providers who have come through the research process - Aviva, Asteron and CommInsure.

We see Aviva, Asteron and CommInsure as being an integral part of our business going forward and will look to them to play a leading role in providing risk products to our expanding client base” Mr Williams said.

In total, nine leading life companies were surveyed on a range of product and underwriting standards relative not only to the professional/blue collar workforce, but also in the areas of farm owner/manager and farm workers as well as the aquaculture and mining industries.

Mr Williams said it was important throughout the whole process to be able to forge strong relationships and service guidelines with the chosen providers.

“There seemed little point in offering an extensive list of providers, but not having strong ties to any. It is an important part of the strong service standards RFA has with our clients that we pride ourselves on the quality of the relationships we build with our clients and service providers,” he said.

“Insurance is a long-term investment and you need to be sure that when you need it the most, at the time of claim, that the company you deal with is solid, reputable and has a top-notch claims handling process.”

DEXX&R has been retained to provide ongoing consultancy to RFA.

Rabo Financial Advisors Limited ABN 46 096 538 288 AFSL 224 709 is a subsidiary of Rabobank Australia . RFA are innovative specialists offering advisory services in investment and personal risk protection. RFA’s mission is to provide high quality financial advice driven by the relationships forged with clients and delivering ongoing advice tailored to each client’s unique needs.

Rabobank Australia is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 100 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank has a AAA credit rating and is ranked as one of the world’s safest bank by Global Finance magazine. Rabobank operates in 42 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1500 offices and branches. Rabobank Australia is one of Australia’s leading rural lenders and a significant provider of business and corporate banking and financial services to the Australian food and agribusiness sector. The bank has 50 locations throughout Australia.

Contact

For further information please contact Jen Reid, Public Relations (Tel: 61 2 8115-2744) or email on sydney.pr@rabobank.com.

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