Zurich Life recently completed a survey of 207 financial advisers to assess how they are responding to the new Australian life insurance framework, a scheme to reduce commissions and change other aspects of advice-giving in the risk advice sector in order to reduce conflicts of interest. Key highlights from the research are as follows:
"Many advisers see room for improvement via efficiency
- 37 per cent will respond to the new framework by increasing their focus on efficiency
- 55 per cent indicated a more flexible, less onerous compliance regime was critical
- A further 33.1 per cent indicated that automation and technology would underpin efforts to adapt to the evolving advice landscape
Many advisers are re-thinking their value proposition and business model:
- 23 per cent seeking to specialise in market segments with higher value clients
- 26 per cent indicating they would focus on more holistic (rather than risk specific) financial advice"
You can read the full release from Zurich at this link.
As providers of adviser technology we are encouraged by the focus on technology and efficiency. Everyone concerned about underinsurance should be worried by the 26% who indicate that they would focus on broader financial advice - rather than risk-specific advice.