LIF prompting life/risk consolidation
The new Life Insurance Framework (LIF) appears to be causing consolidation within the life/risk sector, with advisers acknowledging it will become increasingly difficult to continue as single adviser businesses.
The acknowledgement has come as Australian Risk Advisers forum funder and MediBroker principal, Aaron Zelman, has moved back under the Priority Life umbrella of his former business partner, David Davidson.
Davidson has eschewed buying books of business, claiming he is looking to build a risk-focused business based on recruiting risk advisers he regards as star performers.
Commenting on the move, Zelman said he believed that Risk Specialist businesses would struggle as ‘one-man-bands' in the post-LIF world.
"The benefits of a truly corporatised business model should not be underestimated. Investment in infrastructure, highly effective staff and robust systems are becoming a must for sustainable growth to endure," he said.
According to Davidson, his model is based on successfully transitioning sole-trader advisers into a corporate risk advice.
"Rather than simply buying books of businesses, we're partnering with advice professionals we respect and we're raising the bar on what we can all achieve," he said.
Both MediBroker and Priority Life are licensed under Wayne Handley's Bombora Advice.
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