Risk advice remains a key focus for financial planners, and they are increasingly looking to platforms for insurance solutions, a study has found.
An analysis of financial planners and their use of insurance by Investment Trends found that nearly 40% of new risk business is written via a platform. In addition, those planners who currently write risk estimated that their annualised risk premiums increased by 5% over the last year, and predicted similar future growth over the next 12 months.
According to Investment Trends Senior Analyst, Recep Peker, the percentage of risk premiums written via master trust or wrap platforms has grown from almost zero in 2003, to 39% in 2013.
… insurers without a platform will need a more compelling proposition to compete
He said the result was particularly significant because of the limited range of insurers available on most platforms.
“This means insurers without a platform will need a more compelling proposition to compete.”
Mr Peker said he believed more risk business would be written via platforms if there was a greater range of insurers on offer, because planners believe this structure allows them to provide the best deal for the client.
He added that the Future of Financial Advice (FoFA) reforms may also be a catalyst for planners to write more risk, with 23% saying they plan to provide more life insurance advice as a result of FoFA.
For more findings from Investment Trends’ 2013 Planner Risk Report, see: Advisers Trending Towards Single Insurance Provider.
