Risk advice will need to merge with superannuation advice in the long term for it to be sustainable and profitable, according to ClearView managing director Simon Swanson.
Speaking to Risk Adviser, Mr Swanson said that while a 60/20 hybrid model “provides enough room” for risk advisers to continue to operate, in the long term advisers need to look at providing risk advice with superannuation advice.
“I think the issue that needs to be taken into account is you [will] actually have to have a conversation around superannuation to have the conversation around life insurance,” Mr Swanson said.
“It is as simple as that. I think it will take a long time to move, but it will move in time.
“The only issue that is forgotten in this conversation is if there have been a lot of efficiencies made on the investment side around model portfolios which make the giving of advice around superannuation a lot easier than it used to be,” he said.
Mr Swanson added, however, that while the different areas of the advice industry are converging, there is still a strong need for specialist advisers.
In fact, the industry will see more advice specialists in the future looking to partner with one another rather than looking to take on additional skill sets on their own.
“You will see people form clusters – that is a cluster of mortgage broking, investment advice, superannuation advice, aged care advice [and] life insurance advice,” he said.
“I think whatever happens, just because the breadth of the skill needed today is so wide, that I think we will end up with clusters in reality,” Mr Swanson said.