Financial adviser partners of Integrity Life have named their top three challenges and it’s no surprise the Financial Adviser Standards and Ethics Authority’s (FASEA’S) education reforms have claimed top spot.
Suzie Brown, general manager of distribution at Integrity Life, said advisers claimed their top challenge was changing education requirements.
“Many advisers are deeply concerned with the proposed professional standards which may see some advisers exiting the industry,” said Brown. “The question is, ‘what will the sector look like and how will advisers meet the challenge of updating their qualifications whilst still running their businesses and servicing their clients?’”
Revenue impacts were in second spot, with the removal of grandfathering on both investments and insurance, reduced commissions under the Life Insurance Framework, and a changing marketplace causing increased concern within the industry.
Brown said legacy system issues were advisers’ third challenge, with applications, underwriting and claims failing to sync together.
“This leads to difficulty in on-boarding, getting claims processed, and overall frustration from advisers and their clients around how complex and cumbersome the current experience can be,” she said.
She said many advisers reported relying on relationships with their contacts in the insurer to smooth the process.
Brown said the bottom line is that, through all the changes in the life insurance industry, Australians still need advice, with 59 per cent of respondents surveyed in PwC’s submission to the Senate Economics References Committee Inquiry into the Life Insurance Industry finding life insurance too complex.
“Clearly, the focus needs to shift from the insurer to the customer when we are designing our products and services.”