Assistance from technology providers will be critical for risk advisers as the life insurance industry changes to meet the requirements of the LIF reforms, a new report has found.
The latest Planner Risk Report from Investment Trends, which surveyed 495 Australian financial advisers, has found many advisers are already “evolving” their businesses to meet LIF requirements, but face challenges in their administration, paperwork and compliance obligations.
“Right now, insurance and technology provider assistance is more vital than ever in helping planners expand their life insurance advice,” said Investment Trends senior analyst King Loong Choi.
Mr Choi said 70 per cent of advisers were currently seeking additional support, primarily through “improved process efficiencies”, as well as more information on the reforms themselves and increased adviser business support.
The report also found the number of advisers switching insurers has grown to “a record high”, with 47 per cent of surveyed advisers saying they had stopped using at least one insurer in the past 12 months, up from 45 per cent the year before.
Additionally, 27 per cent of advisers said they would like to “establish a new insurer relationship” in the next 12 months, which Investment Trends said indicates “high switching levels are set to continue” in the future.