July 15, 2015
The New Life Insurance Framework will lead risk-specialist advisers to focus on business efficiencies and to restructure their advice services, according to the findings of the latest Zurich adviser survey.
When asked what would be the single biggest change advisers will make to their businesses to help transition to the new life insurance framework, 37% of respondents said they would look for efficiency drivers. A further 26% said they would deliver more holistic financial advice (rather than risk only) and 23% said they would specialise in market segments with higher value clients.
The survey of 207 advisers was conducted in June and sought to gauge advisers’ attitudes towards the reforms and the likely impact on their businesses.
Advisers nominated a more flexible, less onerous compliance regime (55%) as the strongest potential driver of efficiency within their business, followed by automation and technology (33.1%).
…advisers are clearly starting to think about those aspects of their business where there are opportunities to drive more value
In releasing the research, Kristine Brooks, Head of Distribution for Zurich’s Life and Investments business, said the findings were encouraging because they indicate advisers have already started to reposition themselves for the future.
“Rather than looking backwards, advisers are clearly starting to think about those aspects of their business where there are opportunities to drive more value in the future,” Ms Brooks said.
“Importantly, they are focusing on those parts of the value chain which are most within their control.”
She said the findings also put life insurers and licensees on notice to be more innovative and customer centric in the way they support the client engagement processes of advisers.
Zurich is currently running a national program of roundtables, designed to help advisers work in partnership with Zurich on a blueprint for the future of life insurance advice. The workshops are intended to provide an opportunity for advisers to share insights, challenges and ideas on how to work more effectively with insurers.