An increased focus on advice innovation tools by practices is being driven by proposals in the Life Insurance Framework, notes a Zurich and Beddoes Institute study.
The study, Designing the Future 2016-17, said there is widespread evidence that the proposals to cap adviser remuneration have consequently resulted in advice practices increasing their focus on advice innovation tools.
“Undoubtedly, this agenda is shaped by the sheer volume of disruptive change advisers are currently experiencing, especially those active in the life insurance advice sector,” the report said.
“These disruptive forces are bigger than just proposed remuneration changes, they are forces which will fundamentally change the nature of how people engage with advice, the professionals providing that advice and the underlying product solutions.”
The study also identified the top advice tools that practices plan to use for the first time over the next six months.
“A large number of practices have now, for the first time, recognised the need for a client survey (23 per cent of practices), a marketing intelligence and industry benchmarking strategy (22 per cent), and a social media strategy (22 per cent),” the study said.
Of the advice tools already implemented by practices, 44 per cent of firms said they intend to update their business plan, while 40 per cent plan to update their referral partner strategy.
Around a third of practices also plan on updating their client communication strategy as well as their marketing plan, at 36 per cent and 35 per cent respectively.