{"id":47768,"date":"2020-01-14T14:26:46","date_gmt":"2020-01-14T03:26:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=47768"},"modified":"2020-01-15T07:18:30","modified_gmt":"2020-01-14T20:18:30","slug":"another-tough-year-for-risk-advisers","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2020\/01\/14\/another-tough-year-for-risk-advisers\/","title":{"rendered":"Another Tough Year for Risk Advisers"},"content":{"rendered":"
\n\t\t
Year three of the Life Insurance Framework transition period (2020) will have a greater impact on my advice business than has year two (2019)<\/strong><\/div>
    \n\t\t
  • Agree (85%)<\/small>
    <\/div><\/li>\n\t\t
  • Disagree (9%)<\/small>
    <\/div><\/li>\n\t\t
  • Not sure (6%)<\/small>
    <\/div><\/li>\n\t\t<\/ul>
    <\/div><\/div>\n\t\t\n<\/div>\n\n

    Risk focussed advisers are facing yet another challenging twelve months, according the results of our latest poll.<\/p>\n

    As we go to press, those who have voted in our current poll have overwhelmingly indicated they think 2020 – which is the third and final year of the LIF transition period – will be much tougher for advisers, who will now be restricted to a 66 percent upfront commission cap this year.<\/p>\n

    One adviser comment we’ve received has put it bluntly, stating: “I can’t survive on 66%.” The same adviser detailed a number of factors he says will deplete his 66 percent capped commission revenue, including:<\/p>\n

      \n
    • 10% GST<\/li>\n
    • Licensee costs<\/li>\n
    • Compliance costs<\/li>\n
    • The two-year responsibility period clawback requirement<\/li>\n
    • Cost of further education requirements<\/li>\n
    • Other increasing fees for the practice<\/li>\n<\/ul>\n

      Other comments reflect a similar sentiment, in which there appears to be general agreement that less risk new business will be written in 2020 in a market that is already in decline in terms of risk new business sales.<\/p>\n

      Another comment notes that it isn’t solely the Life Insurance Framework remuneration reforms that is making life impossible for risk writers: “It is compliance and regulation that is the big killer.”<\/p>\n

      The results of this poll and the accompanying comments don’t exactly paint a rosy outlook for advisers in 2020 – particularly for those who focus on delivering life insurance advice solutions.<\/p>\n

      We’ll report and monitor the outcomes around the final stage of the LIF transition period as 2020 unfolds and we hope to stay in touch with you as the year progresses…<\/p>\n

       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Risk focussed advisers are facing yet another challenging twelve months, according the results of our latest poll.<\/p>\n","protected":false},"author":3,"featured_media":47807,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[4247],"class_list":["post-47768","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\/47768","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=47768"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/47768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/47807"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=47768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=47768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=47768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}