Commercial Success for Risk-Focussed Advice –  Your Verdict

It remains possible to sustain a commercially successful risk-focussed advice business model.
  • Agree (47%)
  • Disagree (36%)
  • Not sure (17%)

There’s a degree of adviser optimism in our latest poll result with just over half of respondents agreeing that it’s possible to sustain a commercially successful risk-focussed advice model.

Our latest poll is seeking to gauge 2024 adviser sentiment on what has been a vexed question in recent years: Does Australia’s advice sector still have the capacity to deliver life insurance solutions on a commercially-successful stand-alone basis?

And it seems a good portion of the adviser community does feel that it’s possible with 51% of respondents agreeing to the premise. While 33% disagree, a sizable 16% are not sure, pushing the numbers who don’t disagree with the premise to 67%.

As we noted last week, we’ve chosen the wording of the poll carefully, in that we’re asking whether a risk-focussed advice business model can be commercially successful; not just commercially viable.

Similar conversations have previously been debated by Riskinfo readers, with indications that – notwithstanding the LIF commission caps, minimum education requirements and the rising cost of delivering advice – a commercially-successful risk-focussed advice model may be almost within the reach of many; not just a few outlying advice business propositions.

As we stated it appears the Quality of Advice Review reform measures, once implemented, may produce at least some savings, while a more nuanced business structure in 2024 and beyond may allow more advisers build some elements of fee income into their default life insurance advice processes.

Our poll is open for another week and we welcome your thoughts…