What proportion of your clients do you estimate would be prepared to pay a fee for your life insurance advice?
- Less than 20% (69%)
- Up to 20% (10%)
- Up to 40% (8%)
- Not sure (5%)
- Up to 100% (5%)
- Up to 60% (4%)
Our latest poll stems from newly-released research which suggests there’s a growing number of consumers who are interested in fees as an alternative payment structure for risk advice.
This potentially significant finding is contained in MetLife Australia’s ‘Understanding the Adviser-Client Relationship Report 2019’ (see also: Advisers Should Consider Multiple Relationship Structures…)
Historically, advisers have contended that a specialist or risk-focussed advice business proposition cannot survive without access to remuneration via commissions. This may still be the case, but in more recent times, the industry has witnessed risk advice businesses which have started charging fees for the SoA element of their advice services, while these and other advice practices have also developed a fee proposition for serving their clients at claim time.
The challenge of developing a fee-based business proposition for life insurance advice – effectively replacing remuneration by risk commissions – has always been contentious and until very recent times has also been largely hypothetical.
Has consumer thinking evolved in 2020 to the point where charging fees for risk advice is – at the very least – not out of the question? Or do you think the findings in MetLife’s ‘Understanding the Adviser-Client Relationship Report‘ in relation to fees and commissions will remain theoretical and outside commercial realities?
Tell us what you think and we’ll report back next week…