Some advisers who were more investment-oriented five years ago, given what happened in recent years ended up focused less on investments and more on risk, he said.
“The big issue for risk is you don’t have a ban on commissions,” Kachor told ifa.
“This time around, once [Future of Financial Advice] bites you may find the preference for risk sales will keep investment-oriented people interested in risk where once they might have seen income from investment advice going into managed funds; maybe this time they won’t abandon risk,” he said.
Kachor was speaking following the release of DEXX&R data showing improving inflows into retail life/risk products in 2012.
Total new annual premiums (individual and group) increased by 7.11 per cent to $2.5 billion in the year ending December 2012, according to DEXX&R.
“The good news for most of the life industry in terms of premium inflows, certainly they’ve enjoyed a good five year period, and growth rates are strong,” Kachor said.
“In the individual market, [there are questions over] should you have owner/occupied insurance in your super. Stronger Super may push people to risk outside super where they need to be advised,” Kachor said.
There is also a push to offer simplified risk packages to self managed super fund trustees which could also see a bigger market growing in that area, he added.
