A survey by ifa’s sister publication, Risk Adviser, of 387 readers found that 74.7 per cent listed the Association of Financial Advisers (AFA) as the one that best represents risk advisers’ interests.
Commenting on the result, AFA chief executive Brad Fox told Risk Adviser this trend was definitely an endorsement for the association, but pointed out that the AFA represents more than just those who give insurance advice.
“It is terrific to see that advisers see that we represent risk well, but that doesn’t go to say that we don’t represent other areas of advice well,” said Mr Fox.
“We did come from the Life Underwriters Association and that is part of our heritage, so what that gives us is a really deep understanding of the issues relevant specifically in providing life insurance advice.
“We’ve got specialists across all the disciplines – investment specialists, SMSF, planning, and of course [risk insurance]. So it is a very, very broad association base now compared to where we came from,” he said.
Of the other associations and organisations offered as an option, the FPA came in second, with 15 per cent of the participants’ votes, while the FSC, National Insurance Brokers Association and the Million Dollar Round Table received 1.0 percent, 1.6 per cent and 3.4 per cent respectively.
Commenting on the future of risk specialists, Mr Fox said the conclusions of Life Insurance and Advice Working Group (LIAWG) independent chairman John Trowbridge will have a “strong determination on the attractiveness” of advisers wanting to offer risk.
“Given the work that is currently going on with the [LIAWG] and the review [by] ASIC into risk insurance advice last year, it’s certain that we are going to see significant change in the life insurance advice space,” Mr Fox said.
“[Although] I think it is a little early to call on at the moment, whether we would as a result of those changes expect to see more or less people wanting to specialise in life insurance.”
