The Australian risk market continues to grow following the global financial crisis, according to CoreData.
Initial results from the research and consulting firm’s 2010 Risk Study show that over the past 12 months around half of advisers’ risk advice revenue has come from new clients.
CoreData’s Head of Advice, Wealth Management and Superannuation, Kristen Paech, said many advisers who had not traditionally offered risk insurance viewed this as a sensible source of diversified revenue when markets turned sour.
The rewards of diversification for advisers appear to be evident, with the study showing:
- On average, 48.6% of advisers’ total risk income in the past 12 months came from new clients
- Similar to last year, one in five advisers expects to increase the amount of insurance written with their main risk provider by more than 20% over the coming year
- Almost half of all advisers (48.1%) expect the level of risk being written with their main provider to increase to some extent, while only 9.3% expect it to decrease
The research also shows that while paper-based applications remain the dominant submission method, 43.1% of advisers are lodging new business applications electronically.
CoreData’s annual Risk Study covers ten core areas of service delivery and gives advisers the chance to provide feedback to risk providers to help improve their experience of offering insurance advice.
So far more than 600 advisers have participated in the survey, which also determines the winner of the CoreData Risk Company of the Year Awards, to be announced later this year.
Click here to participate in the study, where advisers can win one of five new iPads.
