Advisers look to platforms to write insurance business
Financial advisers are increasingly turning to their platform when writing insurance business for their clients, new research by Investment Trends has found.
According to Investment Trends' 2015 Planner Risk Report – compiled from a survey of 852 advisers – 75 per cent of advisers say they use their platform to write insurance business.
The research also revealed that more advisers intend to use their platform to write insurance business in the future.
"By 2016, in 12 months' time, [we estimate] four out of five, or 79 per cent of advisers will use their platform to [write] their insurance business," Investment Trends' senior analyst, King Loong Choi, told ifa.
"The key benefits that these planners perceive when using platforms for insurance are really around three key things," Mr Choi said.
"Firstly, [advisers find] it easier for them to manage their client's premium payments; secondly, is for consolidated reporting; and lastly, because it helps reduce the direct cost of insurance to clients," he said.
Investment Trends found BT Wrap was the most widely-used platform by advisers followed by Colonial First State's FirstChoice.
"Part of the reason for those two is, if you think about the platforms that advisers use in general, it is typically just BT Wrap and CFS First Choice," Mr Choi said.
"If you look at who some of the other widely used platforms are, there is also OnePath One Answer, North and MLC MasterKey and those rounded off the top five most widely-used platforms, respectively."
Researching adviser satisfaction across the platforms, Investment Trends found an increased level of adviser satisfaction with the platforms they use.
"About 73 per cent of planners rated their primary platform as either good or very good overall," Mr Choi said.
"Compared with 2014, last year, that was up from 62 per cent," he said.
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