September 25, 2017
September 25, 2017 | Risk Pulse
Get MatchFIT for LIF with the Zurich DIET
There is a growing concern that advisers are not adequately prepared and lack the knowledge of the remuneration changes due to take effect with the introduction of the Life Insurance Framework (LIF) on 1 January.
These are the top findings of a study recently commissioned by Zurich and undertaken by Lewers Research, of around 200 active risk writers.
We found that almost two thirds of advisers (64.5%) are not certain about the types of life insurance remuneration capped, and 69% say they are uncertain of the rules around grandfathering.
Furthermore, only 40% of advisers say they have modelled the impact of the changes to their business cash flow, with just under one in five (18%) saying they will respond to the changes by seeking to see more clients.
Knowledge around new clawback provisions is stronger (with 43.5% clear about the new guidelines) and a variety of strategies have been revealed by advisers that indicate many are re-considering their own value proposition to find ways of ‘future-proofing’ their practice. These include formalising their retention strategy, charging a client a fee for advice, and shifting their business model to accommodate hybrid and level commissions for larger cases.
The Zurich DIET
Our ambition at Zurich is to help advisers stay MatchFIT and remain at the top of their game, no matter what challenges come our way. Keeping focused, prepared, accountable and clear about your objectives are all key to staying MatchFIT and ensuring a healthy, vibrant and growing financial advice profession now, and into the future.
This is why we’ve used a combination of adviser and market research data to design a suite of resources, which together form The Zurich DIET.
This comprehensive program focuses on the key areas of Demand Generation, Innovation, Efficiency and Tools & Resources.
The Zurich DIET includes a cash flow calculator to model the short to medium term impact of the commission changes on a practice, and interactive surveys that can be used to unearth new opportunities within your existing client base. A series of webinars and podcasts will also feature tips, ideas and strategies from leading advisers, who are already successfully reshaping their businesses ahead of the changes.
Access to the Zurich DIET resources is available via the Zurich website, and as always, more information and support can provided by your Zurich risk specialist BDM on 1800 252 650.
This information is dated September 2017 and may be subject to change and does not take into account any personal objectives, financial situations or needs. You should consider these factors, the appropriateness of the information and the relevant Product Disclosure Statement (PDS) before making any decisions or recommendations.