Introduction 

In this section, you will learn how to use Risk Researcher to carry out a client’s risk needs analysis and provide appropriate recommendations for your clients.

Overview

Risk Researcher is a risk comparison tool which provides the following capabilities:

• Risk Needs Analysis

• Qualitative product research

• Premium Comparisons and Modelling

Launching RISK RESEARCHER

1. In the client screen, scroll down the left navigation menu bar and select the Insurance > Risk Researcher option
   
   
   
   

2. The Scenario Selection screen displays.
   
   

3. Click 
   
   

4. Type in a Scenario Name and click Ok
   
   

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Step 1 - Needs Analysis

The Needs Analysis screen is displayed. For this case study, you will carry out a needs analysis for clients Nick and Lynn in the following areas: 

• Term

• TPD

• Trauma

• Income Protection

Case Study – Assumptions

For this case study, we will use the following assumptions: 

 Activity: Needs Analysis 

Access the Needs Analysis page of Risk Researcher via the navigation menu located on the left.

Select Modes and Assumptions:

• Calculation Mode – you can elect to perform the Needs Analysis using either “Present Value”, “Salary Multiple” or “Capital Preservation” method. The amount and type of information need to be input for the Analysi For this Case Study, please select Present Value.

• Analysis Mode – this dictates whether the information is directly input from this screen (Simple) or can be imported from the Client Focus section (Detailed). There is a third option of Splits, which again changes the amount and type of information to be supplied. For this Case Study, please select Detailed.

• Assumptions – This is a hyperlink where you can identify the assumptions to be factored into this calculation. 

Input the risk profiles for the client and partner in the dropdown menus shown below. This will create a discounted rate for any future expenditure to be covered later in this module. We will leave the insurance projection timeframes as the life expectancy for each partner at this stage:

Click  in the bottom right corner to return to save the assumptions and the Needs Analysis page.

Capital Requirements

Liabilities to clear:

• Click on the Liabilities to clear field

• Click the Import button, to import liabilities from Client Fo You can also manually add in a Liability by simply clicking on the dropdown arrow and selecting the option Liability. This activates the fields to enable the manual input of items.

• Make sure to identify how much of the liability is to be repaid on each of the 3 trigger events (Death, TPD and Trauma).

• When you have finished adding in Liabilities, click  . 

Future Expenditure required:

• Click on the hyperlink 

• Click on Import to import all future expenditure into Risk Researcher. You can also specify the duration of these expenses and an indexation amount.

Application to Case Study:

Future Education Expenses: As Nick and Lynn do not have any financial dependents, there is no data to input in this field. 

Medical/Recovery Costs: Enter $80,000 for TPD and Trauma. 

Other: Enter $20,000 in the Life Column for Other expenses which include Funeral expenses.

When entering any details into the boxes shown below, you need to hit Enter on your keyboard for the calculations to refresh.

Capital Provisions

• Disposable Assets: In this field, enter assets that can be disposed of if and when one of the trigger events occur (e.g. the client dies, is permanently disabled or experiences a traumatic event).

  • Import Assets button – Click on this button to import all assets including Sup A pop up box will ask you if Portfolio assets are to be imported as well.

  • Deleting any unrequired fields (i.e. The Home) can be done by selecting the default Add Asset option from the drop down menu.

• Continuing Income: refers to income derived (e.g. non salary) that can be used to offset capital requirements in an insurance even

• Existing Insurance Cover can be included in the Needs Analysi Click on the “Existing Cover” hyperlink, and elect to import the existing cover or enter the cover amounts from scratch.

• Projection/ Funding period: selection of projection period and same sex partner allow In the example below, 10 years is illustrated as the ‘actual funding period,’ as this was how long the Future Expenditure Required was to be catered for.

Income Protection Cover is inputted by clicking on the  located in the Total Capital Required row and Income Protection column: 

Which will then bring up the IP Cover Window: 

Click the Import button to import details of Nick’s salary from Client Focus. Any additional income can also be added by selecting the Add Income field. 

We have now completed an Insurance Needs Analysis for Nick. 

Move on to completing Lynn’s Risk Need Analysis by clicking Partner Needs on the navigation menu.

Understanding Recommended Covers

Risk Researcher provides charts and graphs to help users understand and communicate a client’s insurance need, as well as to provide an overview of the recommended cover.

Individual Activity:

1. Click on Display>Client > Death

• This screen projects how funding of the client’s income needs is met should the client’s Life Cover be claimed.

2. Click on Display>Chart>Client>Proposed Cover

• This graph provides details of the recommended covers.

3. Click on Display>Chart>Sensitivity>Client Dies - Cover

• This graphs shows a comparison of cover required based on different risk profiles.

4. Click on Assumption in the Navigation Menu.

• This menu item provides a list of information that has been used in the Needs Analysis such as Key Assumptions about the client and Life Expectancy Tables.

Step 2 - Recommendations

After you have completed the Needs Analysis the next step is to go into the Recommendations Page.

1. Click on Recommendations in the left navigation menu ba The Cover Shortfalls screen will be displayed:
   
   

2. The table shows that Nick already has $100,000 of Death and TPD cover in the “Recommendations” line.
   
   

3. Click on any of the individual  buttons to bring the specific Needs Analysis figures down into the Cover Required field or click on the first  to bring all covers through.

Individual Activity:

Follow the steps above to find the level of covers recommended for Nick’s TPD, Trauma and Income Protection. Alternatively, the larger arrow under “Needs Analysis” will populate all these fields.

Surplus (shortfall) refers to Level recommended and is automatically calculated from the Cover Required minus Recommendations (Existing Cover).

Recommendations – Level of Cover

We are recommending that Nick and Lynn roll their current superannuation into a different Superannuation fund. As such, we will recommend that Nick replaces his Life and TPD cover currently held within his MLC superannuation.

1.  In the Policy Recommendation section open the Existing tab. Use the  icon to expand the existing policy to view the levels of cover. Use the dropdown box to select Replace for both the Life and TPD cover.

The system will now include this replacement recommendation and a RPAR. 

We have carried out a needs analysis for Nick’s Life, TPD, Trauma and Income Protection requirements, and are ready to go and select an alternative policy for our recommendation.

 Hints & Tips 

Risk Researcher > Needs Analysis Page:

• Pressing “Enter” on the keyboard will refresh the Needs Analysis page.

• Age in Needs Analysis is based on the Needs Analysis calculator whereby Age in Risk Researcher is based on information in Client Focus.

• The Risk Profile used is that from client focus.

Risk Researcher > Recommendations Page:

• To enter details of fees, premiums, notes, and Replacement Product Advice Records, select the Recommend or Existing tab:

1. Click on  to enter or edit details of premiums or fees in their respective col This information will have pre-populated if already entered through Client Focus.

2. Click on  in the notes column to enter notes to save into the scenario.

3. Click on  under RPAR to record notes regarding the Replacement Product Advice Re This information can feed into the Statement of Advice for convenience. Once a section has been completed a green  will appear.

• Advice Documents can quickly be generated from the Recommendations screen through the use of the  button at the  top right hand corner.

1. Quick Merge will automatically generate an SOA onto an existing Document Template.

Step 3 – Premium Modelling

Task

We have carried out a needs analysis for Nick’s Life, TPD, Trauma and Income Protection requirements.

We will now structure the most appropriate cover for Nick and to do some comparison of premiums based on the type of cover, structure, and features that we are recommending.

Structure and Feature of Policy 

For this case study, we are recommending the following structures:

• Death and TPD within Super

• Trauma – Stand alone

• Income Protection – Stand alone

 Activity: Selection of Features of Policies

1. To select and construct a policy for Nick, click on the button.

2. Scroll and select Use Risk Researcher > Nick (Surname).

3. The Premium Modelling > Client Cover Details screen is displayed. Select and enter details as follows:

• At the bottom of the screen work your way through the tabs defining the risk cover.

• Adjust shortfall by editing Sum Insured to refine quotes for all covers.

• Life and TPD will be held in one policy within super (select Linked).

• Edit option so Trauma and Income Protection covers are held outside super.
  
  

4. Click on the General Tab and enter the following details:
   
   

   • Take ‘age to illustrate premiums’ to 60. Premiums will be projected until this age and cumulative premium amounts will also be calculated.
     
     

   
   
   

   • Select ‘A rated or better’ for the S&P Financial Strength requirements. This field allows you to filter your list of life companies in the quotes screen based on credit worthiness.

   • Weighting Profiles in this example will be left as ‘Neutral Weightings.’ These are created in ‘Settings’ in the left navigation menu bar and allow you to filter your list of companies in the quotes screen based on Insurance Provisions that are either ‘essential’ to ‘not important’ for your client.

   • Select your risk product type (Superannuation Only, Ordinary Only or Ordinary and Superannuation).

   • Select either a Global Product List or your preferred Product List. These are also created in ‘Settings’ in the left navigation menu bar

   • Choose whether or not to opt for the Fee for Service/Nil Commission check box option.

    

   1. Click on the Life tab and ensure “stepped” premium is selected.

   2. Click on the Trauma tab and select “Yes” for Trauma Reinstatement Cover.

   3. Click on the TPD tab and Select “Any” Occupation and “No” for the Buy Back option.

   4. Click on the IP tab and ensure the policy has a 30 day waiting period and to age 65 benefit period.

    

   NOTE: All fields on these tabs can be pre-set (under the Settings > Adviser Defaults section in the Navigation Menu) as an Adviser Default Set, so that when entering this screen the Adviser preferences can be automatically changed using the “Load Adviser Defaults” button.

5. Once all tabs have been checked, click on the  button in the top right corner.
   
   

  Activity: View the Premium Estimate Results 

1. To get estimates of premiums for the above recommendations, click on Premium Modelling > Premium Estimates located in the left navigation menu bar.

2. A list of all available products and indicative premiums that meet the criteria set in the Client Cover Details page for the different policies will be displayed.

Tips:

1. The product list in this example is filtered into 3 structures; Death& TPD, Trauma, and Income Protection. These are all tabs at the top of the page.

2. The polices that you view on the premium estimates page can be filtered based on settings within the  button on the top right corner of the page. Click on this button and a ‘Product Filter’ pop up box will generate. Make the following changes within each of the following tabs:
   
   
   
   

   • Slide the Score Filter chart for both Core Provisions and Supplementary Provisions to a score of ‘50.’
     
     
     
     
   • Select ‘Most Comprehensive’ within Product Selector.
     
     
     
     
   • Click . Now only the eligible products based on the selected filters will be displayed.

3. Click on the  icon to see notes and assumptions on the specific product and its premium.

4. Policies that do not fit the desired criteria are represented with . Click on the icon to understand why the product is not available.

5. Clicking on some of the column headings allow you to sort the products on the list. For Example, clicking on the Scenario Score heading will sort the highest rated to lowest rated products based on the ‘Neutral Weightings’ setting previously allocated.

6. Click on  button to view underwriting requirements.

7. Click on  button under Dial-Down column to change the commission structure.

8. Click on  to print different reports including the Premium Estimates report. This report can also be directly saved as a note in the client’s Document Library and saved to the scenario. Click OK.
   
   
   
   

   1. Ticking a box in the Rec column selects the products you are recommending for the client.

Premium Validation

You are able to validate a premium by using the Premium Validation icon . 

This will provide you with an option to proceed to complete a Premium Validation or proceed to the Providers Quoting Software. For example:

For this Case Study, we will proceed to a Premium Validation. After you click on  the Validate Premium window will come up and will refresh. There will be the figure calculated by Risk Researcher, the Premium as just validated with the Provider, and an option to download a pre-populated quote from the Provider which can be used with applications should your client proceed with your recommendation. 

 You can also save a copy of the Quote against this scenario by clicking on

Recommendation – Selection of products 

Once you have decided which products to recommend to your client you need to tick the check box next to the desired product under the column heading Rec. Work through the three tabs and make your product selections. 

 For today, select:

• Asteron Life Complete (Super) for Life and TPD

• Asteron Complete Life Trauma Plus w/ Booster

• Asteron Complete Life Income Protection Plus (Occs AA to A2)

Once you have ticked the boxes against the policies you wish to recommend click on the  button. 

You will notice that the selected products now appear on the bottom half of the screen under Recommended tab. 

• Edit Fees and Notes ONLY prior to recommendation by clicking on the  icons under the relevant headings. By clicking on the Record or Implement buttons, this will either record the recommended policy information in the Clients’ existing insurance page, or Implement the new policies according to your recommendations.

• Once an item has been changed a green  will appear.

• Tick the “Super” column if the Life and TPD policies are held within super.

• It is also at this stage you should complete the details under the  button.This will be all the detail for the Replacement Product/s.

• There is now the option to run an  by simply clicking on the button. This will take you through a wizard to complete the information required for the Advice

 Activity: Implement Recommendation

Once the clients have accepted the recommendations, the policies can be implemented i.e. Recorded as “Inforce” in the Insurance section of Client Focus.

• Click on the  button under the “Implemented” Column.

You will automatically be directed to the client’s Insurance > Existing > By Policy Page. The Plan Name, Underwriter, Policy Status, Sum Insured, and Premium amounts will have pre- populated from the Risk Researcher scenario.

• Click  and then return to your Risk Researcher scenario for further implementation

 Hints and Tips

• You can use Risk Researcher to generate quotes outside of the client’s fil Simply go to the Xplan Menu > Risk Researcher > Premium Modelling:

Please note as you are outside of a client file none of the Client Focus information will be pulled through to the model OR saved against a Client once you exit the Risk Researcher module.

Risk Researcher > Recommendations Page:

• Clicking  the   in   the “Recorded” column   of   the   Risk   Researcher   > Recommendations  page  will  set  the  Policy  Status  to  “Recommended”  in   the Insurance section of Client Focus.

• Clicking the Compare with Existing button creates a ‘Product Comparison’ report between existing and recommended policies.

Premium Modelling > Premium Estimates Page:

Products can be modelled as a bundle (package) by selecting the Package option:

Click  on to see premium projections presented in graphs for all of the displayed products. There are a number of graphs that can be selected.

Stepped Vs Level Premium Graphs per product can be viewed from the  icons.

Clicking the  button in the ‘Premium Result Display’ area will provide a long term premium projection view:

  Activity: Research- Qualitative Analysis and Knowledge Base

Risk Researcher is equipped to provide in depth research into most products available in the market

Knowledge Base

• Risk Research Central provides the latest updates on products, insurance industry legislations and tren 

• Risk Continuum provides a history of changes to insurance products.

• PDS Download  is  where  PDS’s  from  the  different  providers  in  the  system  are available to be downloade

• Financial Strength Ratings provides descriptions of the ratings used to describe an insurer’s financial stability.

• References supplies information around how Risk Researcher performs its assessments.

Qualitative Analysis

The Qualitative Analysis option in the left menu bar provides access to the various tools:

Compare Ratings

1. To access this module, click on the Compare Ratings option under Qualitative Analysis. The Compare Ratings screen is displayed.

2. Enter the details for the client in the tabs.

   A list of products meeting the above criteria is displayed.

   Select the following products for comparison:

      i. CommInsure - Personal Insurance Super - Life Care

      ii. ING Life - One Care (Super)

      iii. AMP Flexible Lifetime - Super

   Note: Expired Products can also be included in this comparison

3. Click on the  button. A Rating report is displayed. This report can be sorted based on Core Score.

4. Select Exclusion for Life Cover. A description for that cover and ratings is displayed.

The Rating Grid can be printed in PDF format from by clicking on Report in the Ratings Grid window.

Compare Differences

This module directly compares 2 policies and illustrates the points of difference. Simply select the cover type and the 2 products for comparison, and the table automatically updates. The provisions that do not appear are either included or excluded from both policies.

Feature Finder

Feature Finder allows you to generate a list of insurance products that meet multiple Feature Requirements. This allows you to eliminate products that do not match your client’s needs.

1. To access this module click on Feature Finder in the left hand Navigation menu.

2. In the top dropdown menus, select ‘your client’s primary Occupation,’ ‘the type of policy you wish to compare’ and the ‘client’s gender'.

3. Select the Features you wish to include in your client’s insurance cover by ticking the check boxes relevant to the Core Provisions and Supplementary Provisions.
   
   
   
   
   

4. Select the Eligible Products tab. A list of products matching the selected Provisions will display.

5. Select the Expired Products tab. After selecting any expired products the client may have, click the + add button.

6. Click the  button. Details of the provisions that each of the ticked eligible products have will be displayed.

7. Click  button to generate a PDF output of the Features Grid.

Rating Benchmarks 

To access this module, click on the Rating Benchmarks option. The Rating Benchmark screen is displayed.

The Rating Benchmark sorts all insurance products by rating within a selected evaluated provision.

• Select benchmark and provision as follows:

The results will be sorted into their respective ratings

To print a PDF report, click on .               

Policy Extracts

To access this module, click on the Policy Extracts option.

This module allows you to select a Provider, Cover and Product, and then be able to see the policy extracts and rating information for the criteria that have been entered.

One on One Comparison 

The One on One Comparison module provides you with the ability to directly compare two products, provision by provision, to find the information you need and generate a range of reports. It allows you to compare policy extracts and research notes between different types of policies from different product providers. 

• To access this module, click on the One on One Comparison option in the navigation men

• Select the ‘type of policy you wish to view.’

• Select the ‘Provision you wish to view.

• Locate and compare 2 policies.

Note that the policies are listed A-Z active and then A-Z expired within the drop down list.

• A report showing the strength of the 2 policies as well as related policy extracts is displayed.

• To print a One on One Comparison PDF report, click on the  button. The Print function will also enable you to select which provisions are to be included.

Compare Policies

This module allows users to compare policy extracts, research notes, and features between 4 different types of policies from different product providers.

1. To access this module, click on the Compare Policies option.

2. Select a cover type.

3. Select an evaluated provision.
   
   

   Select your products to compare. Once each product is selected click add button to populate the page:

    

   
   
   

4. The information viewed can be changed by selecting the Policy Extracts, Research Notes, or Features Tabs:
   
   

   
   
   

5. The information displayed can be printed in a PDF format by clicking on the Report function.