The life insurance company has confirmed that it will take on some employees from ANZ as it gears up to launch new life insurance advice business, Zurich Assure.
Last Friday, 25 February, ifa revealed that Zurich will be establishing an “internal advice capability” through the new business following “ANZ’s decision to focus its financial advice services on high net-worth customers through ANZ Private”.
Customers with existing retail life insurance policies will begin to be serviced from 29 July 2022.
A Zurich spokesperson has since provided an update on what the news means for employees of the big four bank.
“Zurich will be able to offer roles to some ANZ employees, especially those who express interest in transitioning over to Zurich,” the spokesperson said.
“They are currently working through this process with ANZ.”
Following the news last week, ANZ later confirmed to ifa that it will not be shutting down its financial planning services, but rather focus on high net-worth customers through ANZ Private.
Back in the 70s and 80s, when I was a kid and my dad was an adviser, the life insurance companies had reps selling their products. Then the concept of multi-agent was born, where an insurance rep could sell product for more than one life company. Dad was one of the first under this model. From there, some agents became advisers – no longer tied to any one life company and now working on behalf of the client to get the best outcome.
In our attempts to professionalize the industry and become advocates for our clients in the provision of financial products and services, it seems that the large institutions require a sales force no matter what; with no recourse and no regard for the intent of the law. Unfortunately, clients are no more financially literate than they were 50 years ago and no less unsuspecting of the range and quality of advice that is available.
Vertical integration lives & breathes. Will be interesting to see how they meet BID. It would be good for Zurich to show some integrity & call their “advisers” what they are – sales people.
A truly terrible outcome for the employees at ANZ. To be forced to give so called ‘advice’ under a scoped insurance model for a life insurance company seeking to retain their profits is scandalous. I hope this is torn apart before it comes to fruition
Is this effectively an admission by Zurich that specialist insurance advisers are disappearing and generalist advisers are abandoning insurance? Therefore insurers have to build inhouse advice capability? No doubt they will follow the standard product provider model of having a few token licensed advisers, with lots of unlicensed call centre reps generating most of the sales (operating under the fig leaf of “general advice”).
Once again the government and regulators that have created a situation which is ultimately worse for consumers.
Great post, couldn’t agree more. Advisers can’t afford to provide advice now without charging a fee on top of any dwindling commission and many I speak to are opting out. With the reduction in benefits to the insured its becoming a high risk advice business for little to no return.
and just remember YOU still won’t be able to call yourself independent. Isn’t it about time we had those working at these firms such as Zurich and AwareSuper etc be clearly differentiated from those with no links to products.
I have no issues with institutions continuing to advise or manage wealth in the “true” high net wealth space ie family office etc. But a life company setting up a dealer group as distribution force is thinking from 20 years ago.
It is amazing that the longer i am on the planet the more i see what was old become new. So now another Insurance company will have its own sales force ! Does that sound familiar to anyone ? I don`t expect that the younger members will remember but maybe that is part of the problem.! Added to this is the banks heading to the “Private” client sector which is in short no advice advice. What a rort. as always lets have a royal commission , pay a few people of and get what we want ….. Well done Govt, Banks and our representative bodies !.
What will become of the magician at ANZFP?