Tell them, they're dreaming.The lack of competition in the life insurance industry (very few companies to choose from) , the impact of LIF legislation coupled with almost no product differentiation with "me too " products being offered,.... why would anyone be surprised in the decline in profitability of risk insurance.The industry used rely on advisers selling the benefits of risk insurance with some offering better contract benefits/terms than their competitors.That is no longer the case and the issue at hand is, no one can afford to write risk insurance on about 50.0% less than they used to receive prior to 2018.No one afford to write risk insurance with a 2 year "claw back responsibility that benefits the life company but no one else in the transaction, namely the client and the adviser.Now with the introduction of FASEA to operate 1 January 2020 where the best part of 99.0% of risk premiums are commission based, you will no longer be able to talk to a client under Standard 3, conflicted remuneration.....unless the life insurance companies get off their collective backsides and get the government to delay/change many aspects of the FASEA standards to be imposed.Folks, the clocks ticking, which is why over 4000 have left the industry already this year,... with a lot more to go.
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