{"id":39105,"date":"2017-11-28T15:45:33","date_gmt":"2017-11-28T04:45:33","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=39105"},"modified":"2017-11-29T07:03:17","modified_gmt":"2017-11-28T20:03:17","slug":"poll-results-7","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/11\/28\/poll-results-7\/","title":{"rendered":"LIF – Seven in Ten Advice Business Models May Change"},"content":{"rendered":"
\n\t\t
Have you made changes to your advice business model to accommodate the remuneration changes contained in the Life Insurance Framework reforms?<\/strong><\/div>
    \n\t\t
  • Yes (40%)<\/small>
    <\/div><\/li>\n\t\t
  • No, I won't be making any changes (32%)<\/small>
    <\/div><\/li>\n\t\t
  • No, but I'm still considering possible changes (28%)<\/small>
    <\/div><\/li>\n\t\t<\/ul>
    <\/div><\/div>\n\t\t\n<\/div>\n\n

    Our latest poll results suggest almost seven in ten advisers have changed their business model in the lead-up to the Life Insurance Framework transition period, or are at least thinking about it.<\/p>\n

    In the most even spread of results we’ve seen, 35% of those responding to our poll said they have already made changes to their advice business model to accommodate the LIF remuneration changes, closely followed by another 34% who said they haven’t made any changes as yet, but are considering it. The remaining 31% have voted that they won’t be making any changes.<\/p>\n

    While it’s not likely that all of the 34% still considering changes will eventually do so, it’s also likely that many of them will.<\/p>\n

    This suggests a significant proportion of advisers, presumably most of them risk-focussed, have identified their existing business model will not survive the LIF remuneration restrictions, or at least not continue to be a commercially robust model.<\/p>\n

    …we are discontinuing writing risk new business and concentrating on other business<\/h6>\n

    But all is not necessarily as it seems. For example, one adviser noted this:<\/p>\n

    “I answered yes to this survey but that is because we are discontinuing writing risk new business and concentrating on other business. I wonder how many of the yes votes are in the same mindset.”<\/em><\/p>\n

    For this adviser, sadly, his business model changes include the cessation of advising on new business risk which, if replicated elsewhere, means less consumers will receive the risk advice they need.<\/p>\n

    The same adviser continued:<\/p>\n

    “Writing new risk business will be unprofitable and even those that concentrate in this area will be better off just sitting on trails for a few more years then getting out.”<\/em><\/p>\n

    The passage of time will reveal the extent to which this prediction will be borne out, but we hope it will not be the case.<\/p>\n

    Does your own view reflect this gloomy assessment of the future viability of risk advice businesses? Have you found a path that will allow you to continue to deliver risk advice while operating a commercially successful business enterprise?<\/p>\n

    We invite you to share your own views on this question as our poll remains open for another week…<\/p>\n","protected":false},"excerpt":{"rendered":"

    Our latest poll results suggest almost seven in ten advisers have changed their business model in the lead-up to the Life Insurance Framework transition period, or are at least thinking about it.<\/p>\n","protected":false},"author":3,"featured_media":39160,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[4247],"class_list":["post-39105","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-polls","category-remuneration","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/39105","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=39105"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/39105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/39160"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=39105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=39105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=39105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}