Future of Individual Risk Advice – Your Verdict

It will take more than a decade for retail advised life insurance sales to exceed the current high-water mark.
  • Agree (78%)
  • Disagree (12%)
  • Not sure (10%)

The adviser community persists in maintaining a negative outlook on the critically-important future of advised life insurance solutions in Australia.

As we go to press, just over seven in ten advisers (71%) agree it will take at least a decade to exceed the previous high-water mark for advised life insurance sales, which – according to extrapolated Plan For Life data – peaked in the year to December 2013. (Riskinfo can’t help but reflect on the fact that ASIC’s controversial Report 413 Review of Life Insurance Advice was released in early October 2014.)

Meanwhile, less than one in five (18%) disagree with the poll proposition, with 11% undecided.

When we refer above to the ‘…critically-important future of advised life insurance in Australia’, we’re referring to consumers. So, while it was gratifying to learn this week that retention of risk commissions is to be formally mandated within the Government’s first stream of legislation based on the recommendations flowing from the Quality of Advice Review (see: Risk Commissions Enshrined), the elephant in the room for many in the sector screams that a 60/20 commission limit combined with a two-year responsibility period – in what is supposed to be a free market economy – is a pyrrhic victory for the majority of the adviser community, at best.

In thanking those who have contacted Riskinfo and/or left their comments on this question, we remind you that our poll remains open for another week and we welcome your further thoughts on this conversation…


  1. The poll only gives 3 options. The option of checking the box that says, “Do you think the life industry will still be functioning in a decade” is not offered. Surely this option is the relevant one. How will the industry possibly function the way God intended without risk advisers?

    With commissions at such an unsustainably low level for advisers and an absolutely ludicrous and completely untenable 2 year responsibility period, how would anyone possibly think like companies will be selling anything through advisers in even 5 years from now?

    Life companies will have to use RoboAdvice or get super funds to sell their IP policies but one thing for sure is that ‘thinking‘ and self respecting independent risk advisers most definitely won’t be doing the business for the insulting pittance of 60/20 and 2 years that’s currently on offer. How long will it take for these dolts at the life companies to see this – it is written LARGE on the wall and has been for years.

Comments are closed.