- Agree (70%)
- Disagree (24%)
- Not sure (5%)
A majority of advisers agree that weak new business flows are the primary threat to the sustainability of the country’s life insurance sector, according to our latest poll.
The poll was prompted by comments from Lifespan CEO Eugene Ardino during the recent Zurich Sustainability Round Table, at which he argued that falling new life insurance sales since the introduction of the Life Insurance Framework reforms represent a central structural challenge for the sector – trumping product design and premium pricing issues.
Ardino told fellow panellists that while product design and pricing remain important, the sharp decline in new business volumes has had a “significant and detrimental” impact on life insurance pools.
It seems the majority of poll respondents agree, with 65% supporting his proposition. However, 29% disagreed, and 6% weren’t sure.
These interim results seem to reinforce concerns that reduced adviser numbers and lower policy inflows since the LIF reforms have weakened the balance of life insurance pools, particularly as in-force books age.
Our poll remains open for another week and we welcome your further thoughts…
Declining revenue, increasing costs is hardly a recipe for success, though the Life Insurance Industry came up with a great idea to remedy that problem by doubling premiums for their loyal customers, while doing nothing about the thousands of experienced Advisers who gave them revenue.
Worse than that, they did not put up any feasible argument to the insane logic, which then became Regulation that was 100% successful in decimating the Life Insurance Agency force.
When the Institutionalised robots in Canberra who set about destroying the Life Insurance Industry, decided to attack the General Insurance Industry, the response by the General Insurance Advice representative bodies was incredibly quick, effective and squashed the lunatic ideological whack jobs and put them back in their boxes.
Even today, nothing has been done in an effective manner to solve the BLINDINGLY OBVIOUS solution that was explained a decade ago by Advisers to remedy the disaster that was unfolding.
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