Opportunity and consolidation predicted in 2019

consolidation/predictions/forecast/EY/insurance/insurance-sector/superannuation/financial-services-industry/Royal-Commission/RC/

14 December 2018
| By Mike |
image
image
expand image

Major consultancy, EY is predicting further industry shifts with respect to the Australian insurance sector next year, together with further superannuation fund consolidation.

In a range of predictions of how 2019 will play out for the financial services industry, EY has pointed to the impacts of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry but has also pointed to a continuation of trends which are already on-foot.

It suggested that non-regulated financial services players may find opportunities for growth while the major incumbents seek to get their act together in the wake of the changes likely to be recommended by the Royal Commission, while cautioning that all sectors of the industry will be under greater scrutiny.

It said that the major incumbents were likely to be focused on regaining trust and getting back to basics, but that opportunistic new entrants should expect to be caught up in the higher levels of regulatory uncertainty.

Looking at the financial services sector more broadly, the EY analysis noted that there had been higher levels of transaction activity in the past 18 months and this was likely to continue for at least another six to 12 months.

“This will result in a significant shift in the major players in the industry – particularly in life insurance which is experiencing a ‘back to the future’ moment, as banks move out of the sector and pure play insurers become dominant once more,” the analysis said.

“There will also be further consolidation in the superannuation sector, as funds face continued pressure to justify their performance and member returns.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS