‘Traditional’ adviser numbers to dwindle, says Jo-Anne Bloch
The number of financial planners providing holistic strategic advice services will decrease, with real growth to be seen in the transactional advice space, according to Mercer's head of advice, Jo-Anne Bloch.
Speaking at a panel discussion at the FSC Life Insurance Conference in Sydney yesterday, Bloch said the so-called "traditional" adviser will end up servicing high-net-worth clients only, while risk specialist numbers will increase significantly in the months to come.
Bloch confirmed Mercer was currently looking into hiring more risk specialists in a bid to enhance its scaled advice service offering.
MLC Direct general manager Greg Miller agreed, saying while strategic financial planning would always have an important role to play, general advice will be in high demand, especially when it comes to risk.
The panel was discussing the ways scaled and intra-fund advice could address or potentially solve the underinsurance problem in Australia.
Head of industry fund group insurance at CommInsure, Frank Crapis, said intra-fund advice alone would not solve the problem, but it could present a good opportunity for super funds to engage with members and start a conversation about insurance.
However, Bloch stressed risk advice was often not simple and would not fit easily into the intra-fund delivery model.
Miller said 30 per cent of calls his division receives from consumers are about insurance, but so far MLC has delivered general advice (or referred the client to an advice), rather than delivered it through an intra-fund model.
"The biggest issue is people think they have enough cover because it is in their super," Miller added.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
