There was significant engagement this week around our latest poll, which seeks your view on the survival of risk specialist advisers. …And interim results suggest most advisers have a pessimistic outlook when it comes to the future viability of risk specialist advice businesses…
- Fall below the current level of 1,200 (80%)
- Plateau around the current level of 1,200 (14%)
- Increase above the current level of 1,200 (7%)
Our latest poll seeks your view on whether specialist risk advisers will survive.
The poll stems from last week’s report on Adviser Rating’s latest research, in which it reveals there remain around 1,200 advisers in Australia who are classified as risk specialists (see: Specialist Risk Adviser Numbers Revealed).
Over the years, life companies and other industry stakeholders have mostly agreed the number of specialist risk advisers in Australia rested between 3,000 and 4,500. According to Adviser Ratings, the number of pure risk or mostly risk specialists fell by 609 in 2021 to 1,200, meaning there were around 1,800 specialist ‘riskies’ at the beginning of the year.
These number seem about right, with the number of specialist risk advisers already trending down in recent years to 1,800 by the end of 2020, reducing further to 1,200 at the end of 2021.
Given the current regulatory environment, do you think this downward trend in specialist risk adviser numbers will continue to the point of extinction? And what is the main cause of the current decline: the new minimum adviser education standards or commission caps imposed via the Life Insurance Framework reforms? (See also: Retaining Risk Commissions and Phyrric Victories)
Perhaps you think the declining number of risk specialists has bottomed-out and will either plateau at current levels or rise again to the 3,000 to 4,000 range.
Whatever your view, we welcome your thoughts and will report back to you next week…