Suncorp builds on IFAs

Independent financial advisers (IFAs) will be seeking to partner with truly independent insurance providers in circumstances where some major brands appear set to leave the market, according to the chief executive of Suncorp Life, Geoff Summerhayes.

Addressing the UBS Australian Financial Conference, Summerhayes claimed that Suncorp Life held an advantage because of what he termed its "independence in a changing market".

"Asteron is a leading IFA brand in a market that is consolidating rapidly, with the disappearance of the Aviva, ING and potentially AXA brands," he said.

Summerhayes said that it was in these circumstances that IFAs were actively seeking to partner with independent specialists in a financial services landscape dominated by the big four banks.

Drilling down deeper on the changes to the market, Summerhayes said that beyond the consolidation occurring in the market, regulatory reforms that would enforce a fiduciary duty on advisers reinforced the need for independence.

"The need for advice and independent advisers has never been stronger," he said. "There is a two to three year window of opportunity for Asteron to capitalise on this market dynamic, while our competitors will be distracted by consolidation and integration."

The Suncorp Life chief executive pointed to the manner in which the company had focused resources on target dealer groups, with the result that it had won all tenders it had competed for this year.

As well, he said Suncrop had begun building a direct distribution business and had re-engaged in the group risk market, including re-engaging with consultants such as Aon, Merer and JLT.