{"id":37511,"date":"2017-06-27T16:34:55","date_gmt":"2017-06-27T06:34:55","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=37511"},"modified":"2017-06-28T07:19:09","modified_gmt":"2017-06-27T21:19:09","slug":"jury-still-out-on-future-for-risk-advice-specialists","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/06\/27\/jury-still-out-on-future-for-risk-advice-specialists\/","title":{"rendered":"Jury Still Out on Future for Risk Advice Specialists"},"content":{"rendered":"<div id=\"polls-183\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Will the Life Insurance Framework remuneration model allow a risk-focussed advice business to remain sustainable?<\/strong><\/div><div id=\"polls-183-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>No <small>(54%)<\/small><div class=\"pollbar\" style=\"width: 54%\" title=\"No (54% | 190 Votes)\"><\/div><\/li>\n\t\t<li>Yes <small>(31%)<\/small><div class=\"pollbar\" style=\"width: 31%\" title=\"Yes (31% | 109 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(15%)<\/small><div class=\"pollbar\" style=\"width: 15%\" title=\"Not sure (15% | 54 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_183_nonce\" name=\"wp-polls-nonce\" value=\"34160cf0af\" \/>\n<\/div>\n\n<p>Adviser opinion is divided on the future outlook for risk-focussed or risk-specialist advice practices under the Life Insurance Framework remuneration reforms.<\/p>\n<p><!--more--><\/p>\n<figure id=\"attachment_37413\" aria-describedby=\"caption-attachment-37413\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2017\/06\/Chris-Unwin-2.jpg\" rel=\"attachment wp-att-37413\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-37413\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2017\/06\/Chris-Unwin-2.jpg\" alt=\"Risk specialist adviser, consultant and author, Chris Unwin - acknowledges he may have 'rattled a few cages' with his comments last week...\" width=\"150\" height=\"180\" \/><\/a><figcaption id=\"caption-attachment-37413\" class=\"wp-caption-text\">Risk specialist adviser, consultant and author, Chris Unwin &#8211; acknowledges he may have &#8216;rattled a few cages&#8217; with his comments last week&#8230;<\/figcaption><\/figure>\n<p>As we go to print, 47% of advisers taking our poll have said the LIF remuneration model will not allow a risk-focussed advice business to remain sustainable. However, 35% say the 60\/20 remuneration model will be sustainable for risk-focussed practices, while almost one in five (18%) remain uncertain about how things will work for risk specialists under the LIF reforms.<\/p>\n<p>One possible post LIF future will see risk-focussed\/risk- specialist practices incorporating both commissions and fees in their business model. This has been suggested by risk advice expert, <strong><a href=\"https:\/\/www.chrisunwin.com.au\/pages\/july_2017_risk_workshop.html\" target=\"_blank\">Chris Unwin<\/a><\/strong>, whose remarks about the future of specialist risk advice businesses formed the basis for this poll (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2017\/06\/19\/three-step-process-to-charging-fees-for-risk-advice\/\" target=\"_blank\">Three-Step Proces to Charging Fees for Risk Advice<\/a>).<\/p>\n<h6>&#8230;the large majority of risk advisers will more than likely embrace a commission and fee based remuneration model<\/h6>\n<p>In his response to comments from last week, Unwin has made it clear that he is not advocating the removal of commission based remuneration, &#8220;&#8230;but with all of the changes that the regulators have made and also threatened to make in recent years, I do believe that risk advisers need to prepare themselves for becoming more fee orientated,&#8221; he said.<\/p>\n<p>Unwin believes the large majority of risk advisers will more than likely embrace a commission and fee based remuneration model &#8220;&#8230;especially if they are dealing primarily with Mums &amp; Dads as clients&#8221;, he said, adding &#8220;I believe that even Mums &amp; Dads would be able to find a way of paying between $500 and $1,000 for the preparation of an SoA and assistance with the underwriting process provided they can see the value of this assistance.&#8221;<\/p>\n<p>The need for risk advisers to focus more on creating, adding and communicating value for their clients is a key point Unwin was seeking to make, &#8220;&#8230;and I believe this is probably more prevalent amongst newer advisers rather than long in the tooth &#8216;riskies.&#8217;\u201d who have historically been much better trained in how to build stronger and more lasting client relationships,&#8221; he said.<\/p>\n<h6>&#8230;even Mums &amp; Dads would be able to find a way of paying between $500 and $1,000 for the preparation of an SoA<\/h6>\n<p>Does this perspective contribute to addressing the future vialbility for risk-focussed advice businesses? Will there be a proportion of risk-specialist practices that will operate under a purely commission-based model (60\/20) that will deliver a successful business outcome that will be complemented by other risk specialist miodels that will combine commissions and fees? Or is either model a bridge too far for some risk-specialist advice businesses? We welcome your contribution to this issue as our poll remains open for another week&#8230;<\/p>\n<p>Or are both of these possible models a bridge too far for some existing risk-specialist advice businesses? We welcome your contribution to this issue as our poll remains open for another week&#8230;<\/p>\n<p><em>Chris Unwin is running a series of <a href=\"https:\/\/www.chrisunwin.com.au\/pages\/july_2017_risk_workshop.html\" target=\"_blank\">Risk Workshops<\/a> in all five major capitals in July\/August, during which he will focus to a large extent on Step 2 of his three-stage process for charging a fee for risk advice, ie how to add more value.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adviser opinion is divided on the future outlook for risk-focussed or risk-specialist advice practices under the Life Insurance Framework remuneration reforms.<\/p>\n","protected":false},"author":3,"featured_media":37535,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[4247],"class_list":{"0":"post-37511","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-polls","9":"category-remuneration","10":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/37511","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=37511"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/37511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/37535"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=37511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=37511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=37511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}