Insurance platforms highly preferred: report
Thursday, 9 December 2010 12:05pm

Some 80 per cent of advisers use platforms to write risk advice, according to latest figures from Investment Trends research.

This goes against the theory that many advisers are threatened by Future of Financial Advice (FOFA) reforms, with platforms obviously providing a quality option for many advisers with the life market now thriving, despite fear of regulatory change.

According to the 2010 Investment Trends Planner Risk Report, around 80 per cent of advisers are writing some of their risk business via investment platforms while the average life insurance premium per adviser climbed a significant 32 per cent this year.

"Advisers are optimistic about growth in the next twelve months regardless of forthcoming regulatory changes," said Tim Cobb, the Investment Trends advisory board, adding that the life insurance continues to show strong growth.

The report also found that the average life insurance premiums written by planners in 2010 rose by 37 per cent to $99,000 with risk advice now contributing 32 per cent of average practice revenue.

With the popularity of platforms, the report found that advisers prefer a range of choice of insurer, this being the key enhancement requested.

"This has been strongly resisted by all platforms until very recently," said Cobb, who said that the only one that's done it so far is Colonial First Choice, which offer Asteron and CommInsure.

Approximately 800 financial planners took part in the survey report.

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