The proportion of risk specialist advisers in Australia has shrunk by half, according to a study released by the research firm Investment Trends. Risk specialists are those who derive more than 50% of their total practice revenue from providing risk advice.
In its 2019 Planner Risk Report, Investment Trends notes that only 15% of planners derive over half of their total practice revenue from providing risk advice in life insurance, down from 34% five years ago.
Investment Trends senior analyst, Mr King Loong Choi, says that financial planners continue to regard life insurance advice as a key component of their proposition but many are diversifying their advice services.
He also noted that the top two challenges that prevent financial planners from growing their insurance advice services are:
Mr Choi said more advisers are facing challenges posed by “inefficient processes” relating to underwriting, the application process and limited integration between systems.
Another key finding shown in the 2019 Planner Risk Report is the strong interest by advisers in new, less established insurers.
In addition, the report shows that overall adviser satisfaction with retail life insurers has improved markedly over the last 12 months, with 57% of financial planners rating their main insurer as ‘very good’, compared to 48% in 2018.