Early results in our latest poll suggest basic commercial considerations trump the proposed experience pathway for advisers when it comes to their ability to continue to deliver life insurance advice in future. This one-sided interim result makes it our Story of the Week…

Which initiative will have the most significant impact on your ability to continue to provide life insurance advice in the years ahead:
  • Moving commission caps from 60/20 to 80/20 (65%)
  • Implementing an Experience Pathway for advisers of good standing (16%)
  • Other initiatives (9%)
  • Reducing the commission clawback period from 2 years to 1 year (6%)
  • Not sure yet (3%)

Our latest poll is intended to serve as a reality check for what’s most important for advisers – risk specialist or otherwise – when it comes to continuing to offer life insurance advice in the years ahead.

With the Federal Election now on your doorstep, both major parties have made commitments to pursuing an experience pathway for ten-year plus advisers of good standing, while both the Coalition and now Labor appear open to the prospect of retaining risk commissions at their current caps at the very least – subject, of course, to the outcome of the Quality of Advice Review at the end of the year.

many advisers ask …why they should be penalised if circumstances beyond their control lead to life policy cancellation inside two years

Flying under the radar for some advisers – but incredibly important for many – is the present mandate that commissions must be clawed back if life policies are cancelled within the first two years. This current requirement under the Life Insurance Framework reforms generates much feeling among the adviser community, especially for those whose advice has been delivered in good faith and when the reason for cancellation inside two years is totally beyond their control. Based on the fact that dealing with adviser conflicts of interest and observing client best interests have variously been written into statute in the FoFA and LIF legislation, many advisers ask Riskinfo why they should be penalised if circumstances beyond their control lead to life policy cancellation inside two years.

The future remains uncertain when it comes to the relative capacity for advisers to deliver life insurance advice in a commercially viable environment, and we look forward to your votes and your comments as we continue this critically-important conversation…


  1. There are many reasons NOT to be a risk Adviser, which has been well documented.

    The most important considerations for Advisers who want to stay in the Industry and rebuild their risk advice offerings, or for new Advisers to join the Industry, comes down to;

    Opportunity, Profitability and Risk.

    Opportunity, or in todays environment, lack of opportunity is what can help or hinder the Life Insurance Industry to rebuild.

    Today, it is nothing but road blocks for people who may have wanted to look at risk advice as a career, hence the virtually ZERO intake of risk specialists.

    Profitability has diminished due to the maze of Regulatory requirements, even for basic advice, as costs and the time it takes to comply, rise.

    Risk is a never ending worry, mainly due to the plethora of opinions and interpretations on everything Advisers say and do, which makes it a difficult path to follow.


    Separate risk advice from Investment advice and make it an easier path to the entrance and once through the door, have ongoing studies that are relevant to risk advice.

    Provide some certainty that if a current Adviser or potential new Adviser is looking to provide risk advice, that there is a good enough financial incentive and profitability to do so.
    The obvious first step is to guarantee commissions as a income source and then to make commissions sufficient to allow Advice practices to write and retain Insurance premiums.

    Risk reduction, so every time an Adviser opens their mouth, or provides documentation, they can have some comfort that a Regulator or Lawyer is not going to try and destroy what they have worked so hard to build, based on a plethora of interpretation.

    The solution is SIMPLE.

    What we need is for the people who make decisions, to start LISTENING and ACT.

  2. Forget 80% upfront commissions. That takes us back to only “marginally viable”. Sustainability with growth of the industry is what’s needed. 100% upfront commission with 20% renewals will ensure new risk advisers enter the industry seeing a future and that the existing experienced advisers are retained and grow their business. Anything less is simply a life office hack for the life office benefit. Also, 1 year clawback, max.

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