- Yes, I expect it to decrease (46%)
- Yes, I expect it to increase (30%)
- No, I expect it to stay the same (24%)
Advisers appear to lack consensus on the future growth prospects of their business as the industry comes to terms with the implications of the new Life Insurance Framework.
Responding to our latest poll, we have witnessed a split verdict about the the amount of risk insurance business advisers believe they will write during 2016. In a hung jury outcome which presently favours the negative, 45% of advisers think they will write less risk business during 2016, compared with one in three (29%) who believe they will increase their risk business and a significant 26% who are unsure.
This response tells us that the future remains uncertain for many advisers and that more time will be needed before a more general consensus will be achieved regarding the impact of the Life insurance Framework reforms on advice businesses.
…the general business growth outlook of risk-focused advisers in particular will remain uncertain
The result also differs from the outcome of riskinfo’s recent reader survey, conducted late last year, where the same question delivered a different outcome, in which 53% said they expect the amount of life insurance business they will submit in 2016 will increase, while only 18% indicated they think they will write less risk business this year (see: Advisers Bullish on Risk Business Growth). This contrasting result serves to reinforce the lack of certainty or united purpose that exists in the mind of many advisers at the moment.
We believe the general business growth outlook of risk-focused advisers in particular will remain uncertain and ‘changeable’ throughout the three-year Life Insurance Framework transition period, set to commence from 1 July this year, and that only time will determine whether predictions from some quarters of the decimation of the ‘stand-alone’ risk focused adviser will become reality.
Meanwhile, we urge you to have your say about how you see the next three years in particular and whether you envisage a bright or gloomy path for your risk-focused business during this period and beyond…
It is difficult to state where a Risk focused adviser will be in three years, as there is no certainty, has been no clarity and as far as continuity is concerned, it appears the only guarantee advisers have to look forward to, is more of the same, with the added threat of all Commissions being banned if things don’t improve.
As it has been proven time and again, the FSC has run a smear campaign against Advisers, that has the ear of the Government, yet countless times, the FSC has been caught out making false or misleading statements, with to date, no effective response from the AFA or the FPA to curtail them and bring them to task.
This constant attack and threat of more sanctions against Advisers, is not conducive to increasing production, rather it will have the opposite effect, unless some sanity, honesty and commonsense discussion comes into the equation.
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