Genuine Demand for Risk-Specialist Groups

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How likely are you to switch to a risk-specialist dealer group in the next 12 months?
  • Not likely (38%)
  • Extremely likely (25%)
  • I already belong to a risk-specialist dealer group (25%)
  • Somewhat likely (12%)

One-third of advisers voting in our poll have indicated they are extremely likely to switch to a risk-focused dealer group in the next twelve months, with a further 10% saying they are somewhat likely to make the move.

This would indicate there is a strong demand for specialist licensees, who offer a value proposition aligned to a specific product line.

But what is it that is driving the demand? Is it simply having access to an open life risk Approved Product List (APL), or are risk-specialist advisers looking for different attributes in a licensee than their generalist peers?

According to Core Data, risk advisers place somewhat greater importance than generalists on:

  • The remuneration program offered by the licensee (16.7% vs 14.4%)
  • Product independence (13.2% vs 9.9%)
  • A licensee’s education and training program (rated as high value by 12.4% of risk advisers vs 10.3% of generalists)

For those advisers who are looking to switch licensees, Pinnacle Practice’s Anne Fuchs provided this advice on the No More Practice website:

… the starting point is generally always a superficial complaint about their existing licensee such as frustrations with SoAs or APLs

“Be honest about the real reason why you want to move dealer groups. Is the dealer group really the problem or is it something deeper within the business. When advisers come to me looking for a new dealer group the starting point is generally always a superficial complaint about their existing licensee such as frustrations with SoAs or APLs which may be valid, however, without fail when I delve deeper there is always something bigger driving the desire to move dealer groups. Many advisers view a dealer group move as silver bullet to a problem in their business, be it a lack of a value proposition, struggling with client acquisition or a business owner trapped without a succession plan. Do a value based questioning process on yourself. Keep asking ‘why’ until you know the real answer. It will save you and everyone else a lot of time and effort.”

Are you planning a move? What are the reasons behind your transition? We welcome your comments as our poll remains open for another week…