Presenting to investors at the Shaw and Partner Life Insurance Roundtable Series on Wednesday, ClearView Wealth managing director Nadine Gooderick said adviser exits may have reached their end.
“Recent data indicates the exodus of financial advisers has ‘bottomed out’. The government’s recent favourable response to the Quality of Advice Review is expected to provide strong tailwinds for the ‘return’ of advice. Supports return to growth,” ClearView said.
According to data from September 2023, life insurance is an $18 billion market across retail, group and direct to consumer channels, covering almost 80 per cent of non-dependant working age Australians, as of 30 June 2022.
“Due to the improving industry dynamics and financial adviser productivity, new business columns have grown for the last three quarters,” ClearView said.
According to the insurance firm, advised life insurance sales grew 7 per cent across the industry in the 2023 calendar year, growing for the first time in a decade.
The firm attributed the growth to “longer term sustainable factors such as population growth, ageing population, inflation and household wealth, income and debt levels”.
“Drivers in previous decline of advice sales are now well understood – industry appears to now have reset on firmer footing for growth,” ClearView said.
Establishing itself as an “accessible challenger brand” in the independent financial adviser (IFA) market, the firm has seen continued growth in HY24, holding 11 per cent of the new business market share of the IFA market, up from 9 per cent at 30 June 2023.
Showing no signs of slowing growth, Clearview said it is “strongly positioned to take further advantage of the market rebound” with a FY2026 target of 12–14 per cent of the new business IFA market share.
Currently ranking fourth in new business sales with $17.5 million in HY24, the firm said it “remains well positioned to continue to increase its new business share and to broaden its product offerings to adjunct products”.
In the process of shifting the firm’s core focus to life insurance, it exited financial advice in November 2023 with the sale of its 19.99 per cent equity stake in Centrepoint Alliance for $15.2 million in cash to COG Financial.
Earlier last year, the firm also announced it is in the process of selling its investment management business to Human Financial, which is expected to be completed by 1H FY25.
7% growth on last years figure which is probably half what it was ten years ago.
Nadine is on the magic fairy dust train…!
All aboard tickets please lol
People were waiting for the QAR to improve advice, no it has been confirmed it will make it even worse people will re-commence moving to the exit doors. Nadine should start talking to advisers.
“The government’s recent favourable response to the Quality of Advice Review is expected to provide strong tailwinds for the ‘return’ of advice. Supports return to growth,” ClearView said.”
I am missing something ?
What favourable response ?
I think Nadine is factoring in “Qualified Adviser” numbers.
Pigs could fly too, if the had wings. Could is irrelevant.
” The government’s recent favourable response to the Quality of Advice Review”……….. ????????????
What planet is Nadine Gooderick living on ??????????
While the overall exodus of licensed advisers may have bottomed, the exodus by licensed advisers from providing insurance advice, has not. More and more advisers are stepping back from writing new insurance business, and are progressively exiting the insurance space altogether.
Have they adjusted the far for unregistered advisers to be removed and reported the actual amount of retail advisers, then expressed that number after removing super fund salespeople?
Unless Annual Fee Renewal Consent Forms are eliminated (red tape that doesn’t exist in any other nation on earth), millions of Australians will never access cost affordable retail advice again.