We are ‘prepared’ for LIF, advisers say
Just under two thirds of advisers consider themselves ready for the introduction of the Life Insurance Framework on 1 July 2016, a survey commissioned by Zurich has found.
The survey, conducted by Lewers Research on behalf of Zurich, found that of the 202 advisers who participated, 61.4 per cent said they were either “prepared” or “totally prepared” for the reforms.
This was compared with 12.4 per cent of respondents who said they were either “unprepared” or “totally unprepared” for the Life Insurance Framework.
When asked to rate the support they have received, 43.1 per cent of advisers said their licensee had provided “good or excellent” support.
A similar trend was seen for advisers’ preferred life insurer, since 40.2 per cent rated the support they had received as “good or excellent”.
However, only 24.8 per cent of advisers said they had received “no or poor support” from their licensee, and the same was said for their preferred life insurer.
Examining the support advisers had received from the industry association they belong to, a majority of advisers (36.1 per cent) said they had received “no or poor support”.
This compared with 26.3 per cent of advisers who said they had received “good or excellent” support from their industry association.
When asked how they will charge for risk advice in the future, a majority of advisers (28.2 per cent) said they will only ever rely on a commission, even under the 60/20 model outlined within the LIF.
However, 15.8 per cent said they will supplement commissions with a fee from the introduction of the 60/20 commission rate model.
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