- Not sure (43%)
- Disagree (32%)
- Agree (24%)
Our latest poll asks you to gaze into your crystal ball when it comes to the future sustainability of life insurance advice – especially for risk focussed/risk specialist business propositions.
Much debate within the financial advice/life insurance advice sector currently stems from the issues being considered in the Treasury’s Quality of Advice Review, particularly following the public release of 116 of the 133 submissions received by the Treasury (click here to review the 116 submissions).
The scope of the QoA review encompasses a multitude of issues, all framed within the context of building a future that will deliver quality financial advice that is accessible and affordable to as many Australian as possible.
One of the most contentious areas on which the review is seeking feedback relates to conflicted remuneration and the effectiveness and impact of the Life Insurance Framework reforms on the quality of life insurance advice and the impact that commission caps are having on adviser numbers and the number of consumers receiving life insurance advice.
Exemplifying the divergence of views that exists when it comes to the future of risk commissions, the AFA released late last week a scathing critique of recommendations contained within QoA review submissions made by Industry Super Australia and consumer group Choice, which called for the total banning of life insurance commissions (see: AFA Slams Lack of Evidence, Generalisations…).
Surely, ask many advisers and other industry colleagues who have spoken with Riskinfo, sanity will prevail, and risk focussed/risk only advice and advice businesses will have the opportunity to remain viable and – dare we say it – operate profitably into the future.
We welcome your thoughts as to what future you see for risk-focussed/risk specialist advice businesses post the Quality of Advice review. Do you think ‘sanity will prevail’, as many have already shared with Riskinfo? Or are there darker clouds in your crystal ball that hang over the future of specialist life insurance advice practices in Australia?
My apologies in advance as I find myself being forced here to be the voice of negativity, when I don’t really want to be. I would simply ask – when was the last time we saw sanity prevail in the risk industry in terms of the changes being forced? I’ll wait for an answer . . . and while I wait I would ask that someone give us all comfort around the possibility that the powerful vested interests that caused the current quagmire in the risk advice space will magically turn back their evil craftwork and give up their ill-gotten gains with an epiphany that they surrender to advisers. Didn’t happen then, won’t happen now, methinks. But please, help my aging brain cells and remind me when it has happened in the past so I can feel good about the future.
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