{"id":30311,"date":"2015-07-21T15:23:06","date_gmt":"2015-07-21T05:23:06","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=30311"},"modified":"2025-07-16T13:56:50","modified_gmt":"2025-07-16T02:56:50","slug":"lif-three-advisers-in-ten-will-leave-the-industry","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/07\/21\/lif-three-advisers-in-ten-will-leave-the-industry\/","title":{"rendered":"LIF – Three Advisers in Ten Will Leave the Industry"},"content":{"rendered":"
\n\t\t
What is the most significant change you will seek to implement in your risk-focused business in response to the New Life Insurance Framework?<\/strong><\/div>
    \n\t\t
  • Leave the industry (38%)<\/small>
    <\/div><\/li>\n\t\t
  • Increased focus on business efficiencies (22%)<\/small>
    <\/div><\/li>\n\t\t
  • Deliver more holistic, broader advice solutions (20%)<\/small>
    <\/div><\/li>\n\t\t
  • Not sure (8%)<\/small>
    <\/div><\/li>\n\t\t
  • Specialise in advising higher net worth clients (7%)<\/small>
    <\/div><\/li>\n\t\t
  • Other (5%)<\/small>
    <\/div><\/li>\n\t\t<\/ul>
    <\/div><\/div>\n\t\t\n<\/div>\n\n

    Our latest poll suggests a significant number of risk-focused advisers will leave the industry, rather than operate under the proposed Life Insurance Framework reforms.<\/p>\n

    Responding to our question, which asks risk-focused advisers in particular to consider the most significant change they will seek to implement in their business in response to the Life Insurance Framework proposals, 30 per cent said they would leave the industry.<\/p>\n

    As we go to print, 27 per cent say they will increase their focus on business efficiencies, while one in five (20 per cent) are saying their most significant change will be to look at delivering more holistic, broader advice solutions.<\/p>\n

    To date, 10 per cent of advisers say they don’t know what they will do, and we don’t know whether a 10 per cent ‘Don’t know’ response represents a low or a high number, in terms of how the overall adviser population is reacting to this critical issue.<\/p>\n

    Judging by adviser comments so far, there is a strong sense that the issue of improving efficiency within the advice network must be a shared responsibility. Life companies in particular have been singled out in the comments we’ve received:<\/p>\n

    \u00a0Advisers can be streamlined and honed to maximum efficiency, though it all falls down if the retail Life Companies are still struggling to update their systems and administration protocols…<\/em><\/p>\n

    Seeing that the Life offices have been the main perpetrators and supporters of commission reductions they need to get their administration up to speed and take more responsibility…<\/em><\/p>\n

    Meanwhile, this adviser comment articulates the complexity of what a post LIF solution may comprise for an advice business:<\/p>\n

    The problem with straw polls like this one is that there is often no single right answer. we will look at reducing costs as well as widening our offering, this in and of itself will see us then dealing with a more affluent client, deserting those we would normally consider important to our business…<\/em><\/p>\n

    Continuing with the theme of deserting clients, another adviser commented,<\/p>\n

    If one third of advisers exit the industry and much of the rest have to concentrate on high net worth customers only to survive then the access to advice for every day Australians IS GOING TO BE WORSE<\/em><\/p>\n

    Even though another adviser comment has confirmed some life companies are already issuing notices about 1 January 2016 remuneration changes as provided in the LIF proposals, this debate is far from being resolved. We will update our readers as further events unfold, while this poll remains open for another week.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Our latest poll suggests a significant number of risk-focused advisers will leave the industry, rather than operate under the proposed Life Insurance Framework reforms.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3,49],"tags":[],"class_list":{"0":"post-30311","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-general","8":"category-polls","9":"headers-new"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/30311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=30311"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/30311\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=30311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=30311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=30311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}