Poll Results – Hope for Advisers

Are you more confident in the future viability of your advice business following the re-election of the Coalition Government?

  • Yes (64%)
  • Not sure yet (15%)
  • It makes no difference (14%)
  • No (7%)

Our latest poll results suggest most advisers are more optimistic about their future viability under the returned Coalition Government, but there remains an ongoing sense of frustration within the adviser community.

While almost seven in ten (69%) of those taking part in our poll have said they’re now more confident about their business future, around one in four (26%) are either unsure or think it would have made no difference for their future viability, irrespective of who won the 18 May election.

Last week we were at pains to point out that, notwithstanding the return of the Coalition Government, there remain issues that are critical to the ongoing viability of many advice businesses and that a returned Coalition Government will not suddenly deliver outcomes desired by advisers and those who advocate on their behalf.

Those taking part in this discussion over the lat week have seemed resigned to needing to ‘go with the flow’ of industry change, but have called on the life companies to do more. For example:

“…what is needed now with the cuts in commissions and which of course severely limit our incomes, is that the insurers we deal with ramp up their own responsibilities in respect of submitted business.”

This adviser reflected on what remain cumbersome and sometimes un-necessarily drawn-out processes associated with submitting new business. His message to insurers is to come to the party – as advisers have been forced to do so by the Life Insurance Framework remuneration reforms – and lift their game.

“The sooner we stop whinging and get on with it the better chance we have of surviving.”

Elsewhere, others have also alluded to the need for the advice sector to put its head down and work through the regulatory changes – especially remuneration and education standards – that are being imposed on them:

“The sooner we stop whinging and get on with it the better chance we have of surviving.”

Amid this sobering commentary, however, there are brief bursts of optimism. For example, long-time adviser and valued Riskinfo contributor, Jeremy Wright, while remaining cautious about the future for risk advisers in particular, said:

“The return of the Morrison Government means there is room for negotiation.”

While of the opinion that “…life risk specialists are still in trouble if the current restrictive regime continues,” Wright says:

“There must be a concerted effort by the associations and Life Companies to rigorously put to the Government that the very future of the Life Insurance Industry is at stake.”

We note the recent development of the AFA and FPA joining forces to prosecute the case to Canberra for the value of advice and the importance of retaining risk commissions (see: AFA/FPA Join Forces…) and will continue to monitor and report developments as the newly-returned Coalition Government and its new Minister responsible for Financial Services get down to business.

Our poll remains open for another week and we welcome your measured input as always…

  • paulkate72

    “The sooner we stop whinging and get on with it the better chance we have of surviving.” Correctly stated, but a bit insensitive. Advisers in the last five years have had a bit to ‘whinge’ about and no one in government appears to be listening. So this forum is one of the few in which we can whinge.
    Still, remaining positive is essential for survival. The late Stephen Covey, in his book “The 7 Habits…” encouraged being proactive, not reactive. We can’t control the government’s misguided approach to our industry, but how we respond to it will determine the outcome, for good or for bad.

    • Ken

      Hi Paul
      Yep quite understand your thoughts but we can if we try change the course of the future with a combined assault on these outrageous options proposed for us by people that really don’t know
      Yes there will be change we all have to deal with it but let’s make sure it’s constructive change that emulates who we are not what they think we should be and results in a better understanding for all involved