The Risk Adviser Sentiment Index research, conducted for Zurich by Lewers Research, revealed a small improvement in overall adviser sentiment, driven by modest improvements across four of the five metrics tracked by the study, according to a statement.
Conducted through February 2017, the survey of 209 Australian financial advisers found a 12-month improvement in sentiment around current and anticipated sales volumes, the life insurance regulatory environment and long-term practice viability.
Consumer demand for life insurance was the only metric to decline over the survey period, falling marginally, the statement said.
Zurich head of distribution, life and investments Kristine Brooks said that, while the improved sentiment was encouraging, the index is still far from the historical high recorded in December 2013.
However, she added that it’s encouraging to see that the downward trend of the last few years appears to have been arrested.
“There is no doubt that many advisers perceive the recent, ongoing media coverage of the sector has weakened consumer confidence in, and demand for, life insurance,” Ms Brooks said.
“Whilst some elements of the recently passed Life Insurance Framework legislation clearly remain contentious, there is at least an increased sense of clarity around the future market landscape, which allows advisers to re-align their businesses with more certainty.”
Garbage! A targeted survey to try and appease the con job that was the LIF. When business completely tanks in the next few years you can keep fooling yourselves.
Consumer demand for life insurance will not decline but independent risk advisers will and so less business will be written.
Advisers currently writing risk are far better off either looking to other sources of income or sitting on trail incomes because there will simply not be any profit in writing risk in the future.
Agree, there will be an increase of risk advisers who will exit.
There is no need to conduct surveys and big research, just use common sense.
Common sense like two years ago, when the RBA was not concerned about property prices elevating higher. Why worry about it now?
It’s easy, it was very easy to see and forecast that loose monetary policy was going to induce investments into financial assets and real estate, and business who shouldn’t be in a business are in business.
It is also easy to see that all these policies designed to protect consumers from falling prey to crooks, will end up having no access to insurance advice. They will have access to general advice and will purchase direct insurance products, group insurance or have no insurance.