The latest Planner Risk Report from Investment Trends, which surveyed 495 Australian financial advisers, has found many advisers are already “evolving” their businesses to meet LIF requirements, but face challenges in their administration, paperwork and compliance obligations.
“Right now, insurance and technology provider assistance is more vital than ever in helping planners expand their life insurance advice,” said Investment Trends senior analyst King Loong Choi.
Mr Choi said 70 per cent of advisers were currently seeking additional support, primarily through “improved process efficiencies”, as well as more information on the reforms themselves and increased adviser business support.
The report also found the number of advisers switching insurers has grown to “a record high”, with 47 per cent of surveyed advisers saying they had stopped using at least one insurer in the past 12 months, up from 45 per cent the year before.
Additionally, 27 per cent of advisers said they would like to “establish a new insurer relationship” in the next 12 months, which Investment Trends said indicates “high switching levels are set to continue” in the future.
Efficiency improvements and better technology are definitely needed. Mostly in the ancient systems and processes used by the life companies. Insurers have pushed admin onto advisers rather than getting their own house in order for years. Advisers will increasingly deal with those insurers who have the most efficient systems and processes, as adviser admin resources become a casualty of LIF.
No, LIF makes it more important than ever to commence an exit strategy. Wouldn’t think there are too many older riskies considering commencing a degree at this time in their lives! Let alone the business risk of two year clawbacks with 40% less upfront – particularly in light of all the added expenses this industry now has.
And why is the Life Insurance Industry so slow and hopeless to implement data feeds into Adviser software like Coin ? Because they simply don’t give a Sh## !!