Navigating Changes in Australia's Life Insurance Advice Landscape
Navigating Changes in Australia's Life Insurance Advice Landscape
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The conversation on the shifting dynamics in Australia's life insurance advice sector featured Zurich Australia's head of adviser channel, Kieran Forde, and Hayes & Co director, Katherine Hayes.
They engaged with editor Chris Dastoor to spotlight the current market conditions and future prospects for financial advisers in this domain.
Forde pointed out that while the retail life insurance market sees annual premium revenues of approximately $9.3 billion, its growth has been largely plateaued, propelled more by increasing prices than by acquiring new customers. Significantly, merely a third of financial advisers provide risk advice, and within this group, only a minority contribute to the bulk of new business generation.
Hayes brought attention to the hurdles faced by advisers, such as maneuvering through intricate regulatory changes and mastering the specialised knowledge required for risk advice. Their discussion emphasized the vital role of technology and the implementation of targeted training programs to empower advisers in offering high-quality risk advice.
The key takeaway from their discourse is the urgent requirement for an expanded adviser base engaging in risk advice and the integration of innovative measures to combat underinsurance and ensure the sustainability of the life insurance advice sector.
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Knowledgebase
Depreciation: The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.
