October 9, 2017
Will risk specialist advice businesses survive into the future?
- Yes (43%)
- No (36%)
- Not sure (21%)
Our latest poll results suggest more risk-focussed advisers are gradually coming to grips with the prospect of a brighter future for their advice proposition.
As we go to print, 42% of those voting in our latest poll believe risk specialist advice businesses will survive into the future. 37% disagree, while one in five (21%) aren’t sure.
While these numbers suggest significant uncertainty amongst the adviser community about the future for risk-focussed advice businesses, one of the intriguing outcomes from this poll so far rests in comparing these results with a similar question we posed in June this year (see: Jury Still Out on Furture for Risk Advice Specialists):
Fast forwarding to today (and acknowledging the lack of scientific rigour behind our poll results!) we sense that more advisers have done the hard yards when it comes to running the numbers for their business. While ‘only’ 42% agree risk specialist advice businesses will survive into the future, the trend appears to be heading in the right direction for those advocating the retention of risk-focussed advice businesses.
No conclusions can be drawn from this interim result, however, and there remains the distinct possibility that the days of risk-only or risk-focussed advice business – at least under their present structure, may be numbered.
Does this mean that we will be like the dinosaurs and become extinct or the rarer we become the more valued we will be?
Some salient peer comments we’ve received so far include:
“The focus will move far more to business clients as premiums of $5k or less simply wont be commercial for a practice to provide a service.”
“They will survive but in limited numbers and working harder for less income.”
“For those planning to enter this industry !? Don’t !!”
“The new reforms will only impact new start up risk businesses, as established businesses usually don’t have cash-flow issues.”
“Life insurance has been around for over 100 years and there will always continue to be a need for advice, particularly given Australia’s chronic underinsurance problem.”
“The opportunities in life-risk will be there absolutely, but don’t expect it to be a smooth ride.”
We also received this potentially insightful comment on the story that informed this poll (see: Risk Specialist Adviser Numbers Continue to Fall):
“Does this mean that we will be like the dinosaurs and become extinct or the rarer we become the more valued we will be?
Our poll remains open for another week, giving you time to add your own views to the debate on this question…