The proportion of financial adviser income derived from insurance advice has grown steadily, despite a slight shift away from commissions, according to CoreData.
The CoreData 2013 Risk Report – the findings of which were released today, off the back of a survey of 647 advisers in September and October – found that risk business has grown to 55.9 per cent in 2013, up from 40.4 per cent in 2010, with particular growth among new clients.
At the same time, there has been a “slight shift” away from commissions for risk advisers, though “the vast majority of advisers continue to be paid by commission”, said Salvador Saiz, CoreData's head of advice, wealth and super.
“Risk written within super has remained virtually unchanged, with less than half of advisers saying they wrote risk within super over the past year,” the report stated.
The report also indicated that administration services are the most sought after service provided to advisers from life insurer business development managers.
“This ties in with the importance that advisers have placed on support services from their licensees over the past 12 months, as identified in CoreData’s broader adviser research,” said Mr Saiz. “We expect this to be the case going forward over the next 12 months as the reforms are digested.”
In an accompanying statement, TAL Life was named winner of the 2013 CoreData Risk Provider of the Year Award.
“To win this award two years running is a great honour and reflects on the hard work and dedication of the entire TAL team who are singularly focused on delivering the best adviser and customer experience they possibly can,” said TAL retail life chief executive Brett Clark.
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