Risk specialist dealer groups still viable under LIF: Bombora

Risk specialist dealer groups can be "very viable" in the future so long as they change their business models to meet the changes of the Life Insurance Framework, says Bombora managing director Wayne Handley.

Speaking to ifa, the former Apogee general manager said despite concerns that the Life Insurance Framework (LIF) will make it difficult for businesses to operate, risk-focused dealer groups can be a "growth area".

"[As] long as they change their business model I think they can be very viable," Mr Handley said.

"The reason we use the word specialist is very purposeful, because we believe more so than ever we are moving into an area of specialisation.

"We aim to be the best at what we do – do our job for their clients, on their behalf – and we see that area of specialisation actually growing and becoming more and more of a growth area, and we are currently working with more and more financial planners who are finding risk too difficult," he said.

Mr Handley added that the life industry reforms will see the industry move away from being a "cottage industry" and see small, one-man practices move into larger groups.

"I think what you will see happen is a certain amount of consolidation in the industry," he said.

"We will see a gravitation [of smaller practices] towards professional groups similar to ourselves whose aim is to grow the corporatised model.

"We see a real opportunity there," he said.

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