May 28, 2018
Could your advice practice survive and prosper if you were forced to charge a fee for life insurance advice?
- No (82%)
- Yes (9%)
- Not sure (8%)
The headline to this story succinctly summarises the response we’ve received to our latest poll.
As we go to press, 84 percent of those voting in our poll have said their advice practice would fail to survive and prosper if they were forced to charge a fee for life insurance advice. Ten percent of our respondents remain unsure about the answer to this question, while only 6 percent think they could survive on fees alone.
This result bears a remarkable resemblance to the outcome when we asked you the same question in November 2012:
There are two differences this time. Firstly, there’s a minor difference in that a few more advisers are unsure of the answer. A major difference however, has been the volume of responses. We’ve already accumulated double the total number of votes we received in 2012 (and counting), which tells us this question is looming much larger for many advisers in terms of its potential future reality.
Some of the key themes emerging in your feedback include:
- If risk commissions are banned, will commissions also be banned for real estate agents, car sales people etc…?
- Rename the term ‘commission’ to an alternative such as ‘product fee’, ‘mark-up’ or ‘advice fee’
- Charge the regulator with having faith in existing compliance and best interest duty statutes and instead apply a more targeted approach, focusing on those who transgress (based on data that ASIC will now be receiving from insurers on a regular basis)
There are a number of arguments that can be made both in support of and against these comments, and we’ll hand it over to you to let us know what you think, as our poll remains open for another week…