Risk advisers are generally more upbeat in their attitudes around the viability of their business and the potential for stronger volumes of sales in the future, according to the latest installment in ongoing research released by Zurich Financial Services Australia.
In the most recent surveying conducted for its Risk Adviser Sentiment Index, Zurich found a small improvement in overall adviser sentiment in four out of five key metrics measured on a scale of 0 to 7, reversing a three-year downtrend trend.
The research, conducted by Lewers Research surveyed 209 Australian financial advisers during February 2017, and found improvement in adviser sentiment in the areas of current (up from 4.2 to 4.3) and anticipated sales volumes (4.4 to 4.6), the life insurance regulatory environment (2.5 to 2.8), and long term practice viability (4.9 to 5.0)
Consumer demand for life insurance was the only metric to decline and did so marginally (4,5 to 4,4), however all of the metrics are lower than when the Index was launched in 2011, at 4.5, and are well below its historical high of 5.0 in December 2013.
“…many advisers perceive the recent, ongoing media coverage…has weakened consumer confidence in, and demand for, life insurance…”
Zurich Life and Investments Head of Distribution, Kristine Brooks, said that while the Life Insurance Framework remains a contentious issue for advisers there was more clarity around the future landscape of the advice market and advisers were able to align their businesses accordingly.
“It is encouraging to see that the downward trend of the last few years appears to have been arrested; Saying this, there is no doubt that many advisers perceive the recent, ongoing media coverage of the sector has weakened consumer confidence in, and demand for, life insurance,” Brooks said.
As such, the life insurance sector should be drawing upon the stories of clients who have benefited from advised insurance, Brook said, with studies showing that customer satisfaction amongst advice clients is high.
“Showcasing these positive examples is one way we can improve consumer confidence in the value of expert financial advice, and its importance in helping people to protect and grow their wealth,” Brooks said.
“To the extent that expert advice is the first line of defence against the issues of underinsurance and mis-insurance, this would be a positive outcome for the entire community.”
Really a whole 209 that should give us the right figures ??
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