Advisers Receptive to Alternative Remuneration Idea

The advice sector appears to have an appetite for the idea that insurers might pay a service fee to advice practices for the significant ongoing work they undertake to maintain their life insurance books of business.

This seems to be the general consensus stemming from our latest poll, where around three quarters of those voting (74%) think this conversation has merit. Just over one in five (22%) disagree, with a small percentage undecided (see also: Alternative Solutions for Risk Advice Remuneration).

As we were at pains to point out last week, this poll, based on one of the key issues discussed at the recent MetLife Round Table, is simply asking whether the idea is worth exploring – nothing more – rather than asking you to cast your final verdict on the whether insurers should indeed pay an admin service fee to practices to assist in the cost of maintaining risk clients.

…there’s definitely a view held by many that an administration service fees would work for them

On the other hand, though, we’re sensing there’s definitely a view held by many that an administration service fees would work for them and for their business viability – especially for risk-focussed advice business propositions.

As we also noted last week, the idea for some that a product manufacturer would pay their retail distributors an administration service fee might continue to sit in the ‘ridiculous notion’ basket. But in such an evolving space, namely the life insurance and financial advice sector in 2023, 74% of those voting in this poll think – at the very least – that the idea is no longer ridiculous, and therefore worthy of further consideration.

Our poll remains open for another week and we welcome your thoughts, as always…