A key industry consulting firm believes more and more advisers are embracing a fee for service model for insurance, but has warned that some advisers are still in the dark about pricing models.
According to Sue Viskovic, Managing Director of Elixir Consulting, anecdotal evidence suggests some advisers are charging between $1,000 and $5,000 for insurance services.
Advisers are stopping to think about … what happens when commissions don’t cover the cost of delivering advice
“Advisers are stopping to think about the way they do business and what happens when commissions don’t cover the cost of delivering advice. This appears to be extending to more than just the traditional risk and investment advice space, with stockbroking firms also looking at the way they charge,” she said.
Ms Viskovic made these comments as the firm launched a review into adviser pricing models, predicting that the outcome will reveal some of the mysteries, challenges and outcomes that business owners face when creating a fee model.
This is the second time Elixir has conducted the report, which this year will be expanded to include an increased focus on risk pricing models.
“Similar to the first edition of Elixir’s Adviser Pricing Models Research we expect to see that the trend of greater focus on risk during market downturn has continued,” Ms Viskovic said.
As part of the review, advisers are invited to participate in an online survey. Click here to find out more.
