Planners rely on risk advice for income
Financial planners are becoming increasingly reliant on risk advice to drive business income, according to CoreData's Annual Risk Report.
Furthermore, the proportion of business income derived from insurance advice has increased to 52.8 per cent in 2012, up from 47.1 per cent in 2011 and 40.4 per cent in 2010.
This reflects the shift in focus in the advice industry from investment growth to asset protection, according to CoreData's head of advice, wealth and super, Kristen Turnbull.
The report also found advisers are looking for customer focus from their risk companies.
Turnbull said this reflected the strong focus on providing quality customer service and value to clients.
"Advisers are looking for utility in the life company's offer, as seen in the focus on competitiveness of pricing options and cover definitions across income protection, term life, trauma and TPD," Turnbull said.
"In an environment where risk specialists and financial planners generally are facing a myriad of regulatory changes and continued market volatility, advisers are looking to their life companies to bring greater efficiency to their practices."
TAL was named CoreData's 2012 Risk Provider of the Year, with Macquarie, Asteron, AIA and Zurich receiving a 'highly commended' or 'commended' status.
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