Financial advice exodus has 'bottomed out': ClearView

ClearView said it believes there have been signals towards the "return" of financial advice, following the government's favourable response to the Quality of Advice Review.

"Recent data indicates the exodus of financial advisers has 'bottomed out'. The government's recent favourable response to the Quality of Advice Review is expected to provide strong tailwinds for the 'return' of advice," it said.

ClearView said improving industry dynamics and financial adviser productivity has led to increased business volumes for the last three quarters with the inflection point in the market returning to growth.

The positive sentiment comes despite the insurer competing its exit from advice after selling its stake in Centrepoint for $15.2 million back in November last year and aiming to exit wealth management with the sale of ClearView Investment Management to Human Financial which is expected to be complete in 1H FY25.

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Despite exiting the advice business themselves, ClearView said its life insurance business is well positioned to support double-digit underlying NPAT growth.

It said it was "future proofing" the business to prepare for regulatory changes and a new cohort of financial advisers that are engaging customers by social media, podcasts, and digital tools.

The life insurer said it has created a diversified distribution network with more than 1000 dealer groups, comprised of around 5000 advisers.

It said it is now well-positioned to continue to increase its share of new business and broaden its product offerings.

From July 2023 to December 2023, Clearview reported $17.5 million in new business sales.

"ClearView's deep adviser relationships has allowed it to regain share post launch of the new products," it said.