Life insurers to administer LIF pain relief

Life insurers to administer LIF pain relief

Greater collaboration between life insurers, technology providers and licensees is the key to helping financial advisers adapt to change, run more efficient practices and “ease the pain” associated with the Life Insurance Framework (LIF), based on new research.

According to the Investment Trends 2017 Planner Risk Report, financial advisers believe life insurers and technology companies can better support them by providing more information on the potential impact of LIF and greater business planning support.

The report cited ClearView as a life insurer that stood-out in terms of education support around LIF, adding that ClearView had successfully extended its market share in a period when planners are consolidating the insurers they use.

“Insurers that cultivate their planner relationships and maintain high satisfaction levels will benefit from lower attrition levels, and the most crucial satisfaction gaps that insurers need to address related to the call centre, communications and website,” the Investment Trends Report stated.

“Insurers can strengthen their planner relationships by assisting across the entire value chain from processing applications and underwriting right through to client engagement and education in the front-end.”

ClearView ranked highest in overall satisfaction

The 2017 Investment Trends 2017 Planner Risk Report found ClearView received the highest adviser satisfaction ratings for the underwriting process, IT systems, product features and communications. Across the board, ClearView recorded the highest level of overall planner satisfaction, and ranked number one in 9 other categories (out of 12).

Sustainable growth

The report reinforced that smart product design and efficient application and underwriting processes are simply hygiene factors.

Where insurers can add a lot of value right now is around helping advisers transform their business models and achieve sustainable growth.

For most practices, sustainable growth is the Holy Grail. However, it’s getting harder for traditional risk specialists to provide profitable standalone insurance advice. Insurers can support advisers by helping them to articulate and demonstrate the value of insurance, adapt their business models and upskill, if necessary.

Insurers and licensees should work closer together to help advisers overcome impediments to providing insurance advice.

The Investment Trends Report found that 15 per cent of advisers recorded a decline in profitability for the year to June 2017. Only 59 per cent of practices reported an uptick in profitability while 27 per cent were stable.

The research confirmed that life is challenging for advisers with insurance advice revenue down to 26 per cent of total revenue, compared to 32 per cent in 2015.

That said, there are opportunities for advisers to diversify their revenue and better meet the needs of their clients by expanding the scope of their advice into areas like superannuation and investing.

At ClearView, we are committed to partnering with licensees and advisers to see them grow the role of insurance in their business, and ultimately secure the financial wellbeing of more Australians.

Click here for the Press Release

Christopher Blaxland-Walker is General Manager, Distribution at ClearView.