{"id":67798,"date":"2023-09-26T20:16:38","date_gmt":"2023-09-26T10:16:38","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=67798"},"modified":"2025-03-14T12:02:22","modified_gmt":"2025-03-14T01:02:22","slug":"call-for-greater-collaboration-to-avoid-further-decline-in-risk-advice-market","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2023\/09\/26\/call-for-greater-collaboration-to-avoid-further-decline-in-risk-advice-market\/","title":{"rendered":"Call for Greater Collaboration to Avoid Further Decline in Risk Advice Market"},"content":{"rendered":"<div class=\"header row\">\n<div class=\"intro\">\n<h3>There was strong interest this week in our report that all segments of the life insurance sector would benefit from greater collaboration in addressing the current issues stifling the delivery of life insurance advice\u2026<\/h3>\n<\/div>\n<\/div>\n<p>All segments of the life insurance sector can benefit from working together to develop a set of industry-wide solutions to address the current issues stifling the delivery of life insurance advice to Australians.<\/p>\n<p>This call was made by Insurtech firm, <a href=\"https:\/\/lifebid.com.au\/\" target=\"_blank\" rel=\"noopener\">LifeBid<\/a>, within the <a href=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/09\/230926-LifeBid-QoA-Review-Submission.pdf\" target=\"_blank\" rel=\"noopener\">submission <\/a>it made to Michelle Levy&#8217;s Quality of Advice Review, but which has only been released publicly this week.<\/p>\n<p>Warning that the life insurance advice market is in serious danger of further decline without a combined and united intervention, LifeBid founder and architect, <strong>Brett Wright<\/strong>, articulated in his submission a number of the critical issues and thoughts which he says keep many advises awake at night. These include:<\/p>\n<ul>\n<li>On average, it takes 10-15 hours to help a new client with even basic risk advice needs<\/li>\n<li>Ongoing service is too manual and clunky<\/li>\n<li>There is too much complexity, inefficiency and compliance risk across all business functions<\/li>\n<li>There is no light at the end of the tunnel for advice providers<\/li>\n<li>Client experience does not live up to 2022 expectations [this submission was made last year]<\/li>\n<li>Life insurance advice for many advisers, is currently unsustainable and not scalable<\/li>\n<\/ul>\n<p>Wright says these issues combine to have a cumulative impact on the broader community in that they create an environment in which:<\/p>\n<ul>\n<li>Life insurance advice is too complex, time consuming and expensive to provide in its current form and needs an end-to-end revolution<\/li>\n<li>Protecting incomes and families should be growing, but is in decline, to the detriment of consumers and the economy<\/li>\n<\/ul>\n<p>As he has expressed in previous remarks, Wright says the industry is currently operating like Blockbuster Video, when Australians need and want Netflix.<\/p>\n<p>In addition to his call for the life insurance sector to work more collaboratively across insurers, licensees, advisers and the regulator when it comes to risk advice technology, Wright says the answer, in part, rests in technical and digital innovation, where he says his own end-to-end insurtech proposition &#8211; and all similar initiatives &#8211; can act as part of the solution.<\/p>\n<p>Wright&#8217;s call for greater collaboration across the sector comes as his own offer opened to <a href=\"https:\/\/www.strideequity.com.au\/offer\/lifebid-holdings-pty-limited\" target=\"_blank\" rel=\"noopener\">industry crowdfunding<\/a> earlier this month (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2023\/09\/19\/lifebid-crowdfunding-now-open\/\" target=\"_blank\" rel=\"noopener\">LifeBid Crowdfunding Now Open<\/a>), to enable all industry stakeholders (advisers, licensees and insurers) to be able to have ownership, benefit from and be part of LifeBid\u2019s platform to fix risk advice.<\/p>\n<p>He told Riskinfo he believes one of the fundamental elements required to deliver the life insurance solutions critically needed by Aussie consumers is for any financial adviser who wishes to do so, to be able to profitably grow and scale their risk advice offerings.<\/p>\n<p>Riskinfo readers can <a href=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/09\/230926-LifeBid-QoA-Review-Submission.pdf\" target=\"_blank\" rel=\"noopener\">click here<\/a>\u00a0to review LifeBid&#8217;s submission to Michelle Levy&#8217;s Quality of Advice Review.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There was strong interest this week in our report that all segments of the life insurance sector would benefit from greater collaboration in addressing the current issues stifling the delivery of life insurance advice\u2026 All segments of the life insurance sector can benefit from working together to develop a set of industry-wide solutions to address [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":67821,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,8291],"tags":[],"class_list":{"0":"post-67798","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-story-of-the-week"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/67798","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=67798"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/67798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/67821"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=67798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=67798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=67798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}