Fee-only risk advice doable, research showsBY LAURA MILLAN | FRIDAY, 1 MAY 2015 12:30PMRemoving insurance commissions altogether is not just possible, 11% of advisers are already doing it, research by Elixir Consulting found. Related News |
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Judith Fiander
CHIEF EXECUTIVE OFFICER
AUSTRALIAN PHILANTHROPIC SERVICES
AUSTRALIAN PHILANTHROPIC SERVICES
When Judith Fiander first walked in the doors of Australian Philanthropic Services her intention was to volunteer for a few months. Fast forward 14 years and she is the chief executive. Eliza Bavin writes.
It needs to be disclosed if Elixir Consulting is currently contracted to provide data and commentary for any of the big 4 banks or any organisation that has openly supported the Trowbridge Report.
Following a series of entirely flawed processes leading to the Trowbridge Report, every piece of information at present must be investigated to ensure it's genuinely independent and not conflicted by payments or hidden agendas.
Please survey advisers who get 90% of NEW business income from risk, and not those giving investment and insurance advice and cross subsidizing the cost of risk advice.
I've been told of a largish risk firm in the UK attached to a mortgage broker. The adviser offers everyone the same deal. Full commission on risk or net the commission and charge a fee equal to 135% of the premium. Only high earners like that.
When commission was banned in Holland, 40% of risk advisers left. And all the overseas insurers packed up and stopped operating in Holland. I think in Australia the same will happen.
In some insurers the loss of fully underwritten new risk business could possibly even hit hard on Statutory Fund capital adequacy and solvency.
The banks will exit Personal Advice from the branches, sell their own AFSLs, and flog the sort of risk products sold on TV, under general advice, using Robo advice.
The banks hope they will recover the 50% of new business income lost to their insurers when IFAs go. And then there is APRA's demand for the banks to hold more capital in the light of real estate lending. Don't touch negative gearing, hello Social Security budget.
As an older ex-public servant I was appalled at Frydenberg's response to AMP that "it was not enough". Now that IS ministerial involvement in the life insurance market, and this person aspires to be Treasurer. Treasury appears to be sidelined, shades of Rex Connor and Jim Cairns
This Minister is being advised by an ex FSC person in his office, and Hockey has 2 bankers in his.
Feeling threatened much Craig?
No Matthew......not at all.
But it is very nice of you to ask.