Cutting Costs Part of the Answer – Poll

Our latest poll results suggest cutting expenses by 20-25% may represent at least a part of the solution when it comes to sustaining risk specialist advice businesses.

As we go to print, around one in three poll respondents agree with the proposition that reducing the cost of delivering advice by 20-25% will make the difference for specialist risk businesses in terms of sustainability and profitability.

At the same time, however, a greater proportion – 45% – disagree.

The aim of this poll was to consider the other end of the profitability equation for risk-only and risk-focussed businesses, namely the impact of reducing expenses rather than increasing commissions. But our thoughts almost naturally steer us to contemplating what the result may have been if we had offered you the opportunity to vote on the impact of a scenario that delivered a 20-25% reduction in expenses in tandem with a 20% increase to the current Life Insurance Framework commission caps.

We may structure a future poll around such a question, but in the mean time, our current poll remains open for another week and we welcome your thoughts as the countdown to the release of the Quality of Advice Review recommendations continues…