{"id":7431,"date":"2010-08-17T17:49:41","date_gmt":"2010-08-17T07:49:41","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=7431"},"modified":"2020-02-06T08:11:30","modified_gmt":"2020-02-05T21:11:30","slug":"risk-books-in-demand-as-practices-warned-grow-or-go","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/08\/17\/risk-books-in-demand-as-practices-warned-grow-or-go\/","title":{"rendered":"Risk Businesses in Demand as Practices Warned… ‘Grow or Go’"},"content":{"rendered":"

The Global Financial Crisis\u00a0has led to a renewed respect from many planning firms\u00a0for the value of life insurance portfolios within their practice,\u00a0according to a leading industry contributor.<\/p>\n

Kenyon Prendeville<\/a> founder, Steve Prendeville<\/strong>,\u00a0told\u00a0riskinfo\u00a0he has seen what he believes to be a new ‘humility’ developing within many financial planning firms who are seeking to re-shape their practices, post GFC,\u00a0in a way that will deliver more stable revenue streams in future.<\/p>\n

Mr Prendeville said many more planners were now viewing life insurance advice and its associated revenue streams as one key component in the drive to develop these more consistent income streams.<\/p>\n

… planning firms need to either\u00a0grow or go<\/h6>\n

But Mr Prendeville warned\u00a0it wasn’t enough for planning firms just to develop more consistent revenue.\u00a0 In a pointed\u00a0reference to his observation that so many firms were surviving off revenues generated by existing clients, he said that “… planning firms need to either\u00a0grow or go.”<\/p>\n

The combined impact of the need to develop more consistent revenue streams and the need to develop new client bases in order to cross market financial services has seen the demand for life insurance practices outstripping the available supply.<\/p>\n

According to Mr Prendeville, the value of risk practices is presently at a premium because of what he refers to as the scarcity factor created by\u00a0this current market demand and under-supply.<\/p>\n

Put simply, Mr Prendeville said,\u00a0“There is a huge and unsatisfied list of planning firms\u00a0looking to buy\u00a0a risk practice.”<\/p>\n

On the other side of the equation, Mr Prendeville predicted the coming few years may see more practice principals deciding to exit the market, citing factors such as:<\/p>\n

    \n
  • A proportion of\u00a0principals will not have the energy to transition their practice from commission to fee for service revenue<\/li>\n
  • The present average age of a practice owner is 58+ and a proportion will decide to exit now, rather than re-build and\/or initiate further growth<\/li>\n
  • Rising Professional Indemnity costs brought about by increased client litigation flowing from the fallout from the GSC<\/li>\n
  • Heightened personal stress levels<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    The Global Financial Crisis\u00a0has led to a renewed respect from many planning firms\u00a0for the value of life insurance portfolios within their practice,\u00a0according to a leading industry contributor.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-7431","post","type-post","status-publish","format-standard","category-general"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/7431","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=7431"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/7431\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=7431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=7431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=7431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}