Accountants are not reviewing their clients’ insurance and therefore missing out on potential referral income, according to Effective Referral Management Director David Phelan.

“While accountants are not authorised to give advice, they should be having a discussion about the client’s insurance needs,” he told insuranceNEWS.com.au.

“It is important they take the trouble to ask what cover there is as part of their role in looking after the risk management of a client.”

Mr Phelan says he has found accountants not asking clients about either their general or life insurance policies.

“The clients are looking for guidance and the accountant should be talking to them about what happens if they suffer an accident or become disabled,” he said.

“Accountants do have a duty of care and there have been cases where they were sued for not asking about insurance.”

Mr Phelan says while accountants can be licensed to give financial advice from July 1, many will prefer to give referrals to specialist insurance advisers.

“But then there is the question of how you develop a referral network with people to professionally trust,” he said.

“I know an accountant who didn’t ask about insurance, but we helped them develop some extra questions on the topic and now they are giving two referrals a week to an adviser.”

Mr Phelan says if the accountant asks a straightforward question about insurance, they will probably receive a yes or no answer.

“By asking more questions the accountant can build up the relationship and undertake a discussion about the insurance needs of their clients.”