{"id":60101,"date":"2022-03-22T17:41:46","date_gmt":"2022-03-22T06:41:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=60101"},"modified":"2025-03-14T12:02:27","modified_gmt":"2025-03-14T01:02:27","slug":"lif-writing-on-the-wall-fewer-australians-will-receive-risk-advice","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/03\/22\/lif-writing-on-the-wall-fewer-australians-will-receive-risk-advice\/","title":{"rendered":"LIF Writing on the Wall – Fewer Australians Will Receive Risk Advice"},"content":{"rendered":"
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The unintended consequences attaching to the Life Insurance Framework remuneration reforms continue to be reinforced in the Riskinfo Story of the Week, where it appears fewer consumers will be the beneficiaries of life insurance advice that can make such a positive difference for so many…<\/h3>\n<\/div>\n<\/div>\n

Feedback from advisers affirms the consumer will be one of the biggest losers when it comes to the fallout – the unintended consequences – from the implementation of the Life Insurance Framework reforms.<\/p>\n

Adviser survey data recently released by Investment Trends consolidates the firm’s earlier findings that the most significant change risk advice practices have been making to their business in recent years in direct response to the Life Insurance Framework reforms is servicing fewer risk clients.<\/p>\n

…servicing fewer risk clients …was the top response from those survey respondents who provide advice on life insurance<\/p><\/blockquote>\n

This is one of the key findings delivered in the research firm’s 2021 Adviser Risk Report, which reveals servicing fewer risk clients (just under 40%) was the top response from those survey respondents who provide advice on life insurance, when it comes to the changes they’re making to their businesses in response to the LIF reforms.<\/p>\n

Investment Trends asked the same question of risk-focussed advisers in its 2020 survey, in which just under 30% responded that they would be servicing fewer risk clients. This was also the top response in the 2020 survey, but which has now extended from just under 30% to just under 40% of risk-focussed advisers in the space of a year.<\/p>\n

While there exists a general consensus that the new minimum adviser education standards originally set by FASEA has led to a downturn in the number of authorised representative remaining in the sector – thus leading to fewer Australian receiving advice – this latest finding from Investment Trends would appear to deliver a ‘double whammy’ in that the issue of fewer Australians receiving financial advice due to the FASEA reforms is being exacerbated by the Investment Trends finding that those risk-focussed advisers remaining in the sector are themselves servicing fewer clients.<\/p>\n

The following chart details the top adviser responses across 2020 and 2021 in the Investment trends Adviser Risk Report when it comes to changes in their business stemming from the implementation of the Life Insurance Framework remuneration reforms. These reforms and their impact are being reviewed as part of the Treasury’s “Quality of Advice Review”, which is due to submit its report to the Government of the day by 16 December 2022 (see also: Quality of Advice Review Terms of Reference Released<\/a>):<\/p>\n

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Source: Investment Trends November 2021 Adviser Risk Report<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

The unintended consequences attaching to the Life Insurance Framework remuneration reforms continue to be reinforced in the Riskinfo Story of the Week, where it appears fewer consumers will be the beneficiaries of life insurance advice that can make such a positive difference for so many… Feedback from advisers affirms the consumer will be one of […]<\/p>\n","protected":false},"author":3,"featured_media":60110,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3,8291],"tags":[],"class_list":["post-60101","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-general","category-story-of-the-week"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60101","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=60101"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/60110"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=60101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=60101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=60101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}