A clear majority of advisers participating in our latest poll say they are now more disposed to charging fees for risk advice than they were 12 months ago.
As we go to press, 68% of respondents agreed their willingness has increased, while 23% disagreed, with the rest unsure.
These results suggest a continuing shift in attitudes toward traditional remuneration structures for life insurance advice. While commissions remain central to most risk advice businesses, the idea of supplementing that income with fees appears to be gaining broader acceptance across the sector.
This change in sentiment has emerged against a backdrop of ongoing discussion about what constitutes adequate and commercially sustainable remuneration under the Life Insurance Framework. The issue was examined in detail during the recent AIA Australia Advice at the Crossroads Round Table, where a range of perspectives were shared regarding current commission caps and the evolving role of fees.
One notable development over the past year has been the ATO’s clarification around the tax deductibility of certain upfront advice fees, potentially opening new opportunities for advisers in specific tax advice-related circumstances. Combined with the commercial pressures many risk-focussed advisers continue to grapple with, this may be contributing to the gradual softening among some advisers of previously-held firm positions against charging fees for upfront risk advice.
As the industry continues to navigate remuneration, regulatory settings and shifting consumer expectations, this poll suggests advisers appear increasingly open to reassessing their business models.
Tell us what you think, as our poll remains open for another week…
