In a statement, Milliman Australia practice lead Wade Matterson said the financial advice industry is set to undergo immense changes following the royal commission into misconduct in financial services, and practices will need to adapt.
“There’s no doubt we’re arrived at a tipping point for our industry,” said Mr Matterson.
“The advice business must grow and develop in sophistication to match market expectations. Technology and big data will play a huge role in rebuilding trust and giving advisers new ways to understand and present advice to clients. Leveraging both now will be the differentiator between success and failure in future retirement outcomes as well as advice practices.”
Subsequently, Milliman said in its statement that it will commence working with advice practices “in an effort to markedly improve retirement outcomes” for clients.
“Milliman sees the speed of the change as a clear opportunity to help shape the market by finding solutions to the biggest challenges facing advisers and their clients including managing sequencing and longevity risk,” the statement said.
To be fair, this article is not about big data, technology etc…it’s about Milliman saying they intend to work with advisers to solve the biggest problems in financial planning, which are (i) sequencing risk, and (ii) longevity risk. I will add there’s another big risk too, which is (iii) capitulation risk and the three problems go hand in hand. It’s fair to say too that most planners pay bare lip service to these issues; hardly any planner even recognises these issues never mind figuring out how to solve them. And finally, I will say that these problems have already been solved, and in a highly innovative way. They just haven’t been solved yet by the good folk at Milliman.
Technology, big data, build trust – the usual rubbish spouted.
How will those things lower cost when is spiralling out of control and every dealer group has a different interpretation of the regulatory requirements. The regulators have no idea – if they did they would stipulate exactly what had to be provided and be prescriptive in the required format.
Milliman – what is it actually that you will do?? Nothing in your “sizzle sell”. You have to improve and IFA as per Mattie….you are a hopeless media and communications platform.
Would be good to have some substance instead of fluff ?
thank god for Milliman, coming to save us all.
Is the IFA just doing press releases now?