Advisers ready for Life Insurance Framework
Just under two-thirds of risk advisers consider themselves prepared for next year's Life Insurance Framework (LIF) changes.
This was one of the key findings to emerge from research commissioned by Zurich by Lewers Research, which found that 61.4 per cent of respondents rated themselves as ‘prepared' or ‘totally prepared' for the LIF changes, with only 12.4 per cent rating themselves as ‘unprepared'.
According to the research, efficiency (38.1 per cent) and business cost structures (35.6 per cent) have been the main areas of focus for advisers preparing for the LIF changes. Twenty-seven per cent of respondents said they had looked at new service offerings and 17.3 per cent said they had re-engineered their processes.
Interestingly, 30.2 per cent of advisers surveyed said they had done nothing to prepare for the changes.
When asked about remuneration, over one-third of advisers said they would supplement risk commissions with fees, with approximately half of those expecting to implement such an approach once the proposed 60/20 commission cap became effective. However, 24.3 per cent said they didn't know what their charging intentions would be.
"Advisers are putting every aspect of their business under the microscope, questioning everything from their cost structures, their target clients and their broader value proposition," said Zurich Head of Retail Distribution — Life and Investments, Kristine Brooks.
"This process will not only help advisers ‘future proof' their practices, it will ultimately allow them to deliver better outcomes for their clients, as they turn to technology to not only drive more efficiency but to also deliver a customer experience which is more engaging, more consistent and more interactive."
The survey of 202 active risk advisers was conducted in October 2015 by Lewers Research for Zurich.
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