Financial planners have reported a jump of 30% in the proportion of the overall practice revenue coming from life insurance products over the last year, according to the latest survey findings from Investment Trends.
The outcomes, from the researchers’ October 2008 Planner Risk and Risk Technology Report, form another strong indication of the growing importance placed by planners on risk advice within their practices.
In response to the survey findings, Mark Johnston, Principal of Investment Trends, concluded ”With funds under advice down and inflows stifled, risk is now a more important part of the business mix for advisers.”
Other survey findings support this conclusion, such as feedback indicating that fewer planners now described themselves as ‘investment specialists’, with more saying they offered advice on both risk and investments.
Other key findings from the survey include:
- 55 per cent of planners who derive more than half of their revenue from risk products say they would like to perform life insurance transactions via their platform or planning software within three years
- Planners would like to see a range of new functionality and other improvements to better integrate risk products into their existing systems
- Integration of risk offerings is now a more important driver of planners’ satisfaction with both their platforms and planning software (based on other Investment Trends research)
Various service ‘dimensions’ of the insurers were also rated by advisers in the survey, with the outcomes including:
Overall Service
- Zurich
- AXA
- AIG Life
Policy Definitions
- Zurich
- Aviva
- ING OneCare
BDM Knowledge
- CommInsure
- Zurich
- AIG Life
Telephone Support
- Macquarie Life
- AXA
- Zurich
A further key point emerging from the survey, based on premium income per adviser, is that there is still considerable scope for further growth in the insurance revenue component in the average practice. To assist in achieving this growth, and to service their clients’ risk needs in an efficient and effective way, Mr Johnston reports advisers calling for ‘a wide range of improvements’ from three integral providers in the process:
- Insurers
- Planning and risk software providers
- Investment platforms
