Planners are focusing more on life insurance and expect this to continue over the short term

Recep Peker

The proportion of planners advising on risk has remained steady at 90% over the last 12 months, and those who do are sourcing a greater proportion of their practice revenue from providing risk advice (29%, up from 27% in 2013). Looking forward, planners expect this trend to continue with risk advice accounting for 31% of their practice revenue by 2017.

“Risk continues to be a key component of many planners’ businesses,” said Investment Trends Senior Analyst Recep Peker.  “Providers can help facilitate planners’ intention to grow their risk business by addressing some of planners’ key challenges, chiefly high premiums, administration issues and inefficient processes.”

Planners are expanding the range of insurers they use, but switching remains high

After four years of planners consolidating the number of insurers they use, planners have started to expand the number of insurers they use. The typical planner now uses 3.7 insurers each, up from 3.4 in 2013.

However, levels of insurer switching remains high with 40% of planners saying they stopped using at least one insurer in the last 12 months, up from 35% last year.

“Insurer relationships are in a state of flux,” said Peker. “Planners are aggressively expanding the number of insurers they use, while cutting those who aren’t exceptional. There are great opportunities and risks for insurers to either benefit or lose out from this switching.”

Despite insurer relationships changing rapidly over the last 12 months, it is still crucial to be a planner’s most-used insurance provider. Planners currently write 59% of premiums through their most-used insurance provider.

BT Life, OnePath and AIA Australia posted strong gains in terms of primary market share. The top five insurance providers by number of primary planner relationships are now:

1. OnePath
2. AMP
3. AIA Australia
4. BT Life
5. TAL

“Whilst planners are using a wider range of insurers, the market is also becoming more concentrated,” said Peker. “The top five insurance providers now account for 66% of primary planner relationships, up from 62% last year.”

Zurich and AIA Australia has the highest satisfaction amongst its users

“Satisfaction is crucial in the insurance space, as business is not very sticky and planners can easily stop writing new business with an insurance provider,” said Peker. “That’s why there is a very strong relationship between satisfaction and switching behaviour.”

Planners’ overall satisfaction with their most-used insurance provider remained steady at a high level. The top three insurance providers by overall planner satisfaction in 2014 are:

1. Zurich
2. AIA Australia
3. Asteron Life

Underwriting is a key area in which insurers can differentiate their offerings

Following the tightening of underwriting standards over the last year, we’re seeing the average number of days planners say it takes providers to process underwriting submissions increase from last year’s levels. This has resulted in planners’ satisfaction with underwriting falling slightly at an industry level over the last 12 months.

“The underwriting process is the strongest driver of overall satisfaction with insurers,” said Peker. “So, any falls in satisfaction with the underwriting process is noteworthy.”

“Underwriting is very important for both acquisition and retention, and will be a key battleground for insurance providers over the next year,” said Peker.

45% of planners said insurance providers should focus on improving underwriting speeds to help them with their advice on risk.

Users of XPLAN’s risk modules have the highest levels of overall satisfaction

89% of planners who advise on risk use risk software. XPLAN continues to dominate the risk software space with over half (53%) of planners using XPLAN’s risk modules as their most-used risk software. This is followed by Rubik/COIN (18%) and Midwinter (8%).

At an industry level, planners’ satisfaction with their most-used risk software remained steady at the eleven-year average.

Among risk software providers, XPLAN achieved the highest average overall satisfaction rating from its users and ranked highest across all nine of the other service elements measured.

The post Key findings of the Investment Trends 2014 Planner Risk Report appeared first on AdviserVoice.

The AFA Award Program reflects the Association’s belief that recognising excellence in the practice of financial advice is integral to building a strong profession, according to AFA CEO Richard Klipin.

“The Award program demonstrates the AFA’s commitment to the growth of professionalism by not just recognising excellence in advice, but acknowledging and encouraging the next generation of advisers. Also vital to the profession’s future is increasing diversity and continually raising the bar on education standards,” said Mr Klipin.

The Award Program includes:

• AFA Adviser of the Year
• AFA Rising Star of the Year
• AFA Excellence in Education
• AFA Female Excellence in Advice

AFA Adviser of the Year – proudly sponsored by Zurich
Now in its 10th year, this award has been sponsored by Zurich since its inception in 2003.  To date a record 51 nominations have been received for the 2012 award.

The purpose of the Adviser of the Year Award is to pay tribute to individuals who not only run highly successful financial advisory businesses but who also go above and beyond in contributing to the financial services industry and wider community.

To celebrate the award’s 10th anniversary, cocktail events were held around Australia. Past winners received commemorative gifts and this year’s nominees received commemorative trophies.

AFA Rising Star Award – proudly sponsored by OnePath
The AFA Rising Star Award recognises up-and-coming advisers who provide quality advice, excellence in practice management, demonstrate a commitment to education and contribute to the industry and general community.

The Award reflects the AFA’s belief that recognising excellent practice is integral to nurturing a strong, professional industry.

AFA Excellence in Education Award – proudly sponsored by Asteron Life
Previously known as the AFA Student of the Year, this award is intended to support and reward those who undertake the challenge of acquiring knowledge. It recognises commitment and excellence in advice through participation in further education. For those just starting out in the industry – and for those who have been around since it began – because ongoing education is key to continually raising the bar of financial advice.

AFA Female Excellence in Advice Award (NEW) – proudly sponsored by TAL
Established in 2011, the Female Excellence in Advice Award is the latest Award to join the award program.

A joint initiative of the AFA and TAL, the Award was established to identify and reward female financial advisers showing outstanding professional excellence and leadership within the profession. It seeks to enable a better gender balance in the sector by encouraging more women to enter into and take leadership roles. Importantly, the Award also aims to generate awareness about the challenges facing many women in securing their financial future.

“AFA Award winners and finalists lead the way and create a more trusted, robust and diverse profession to help Australians secure their financial future. Promoting outstanding achievers in advice will continue to raise the bar for the profession,” said Mr Klipin.

Winners will be announced at the AFA National Conference on the Gold Coast in October.

For more information and nomination details, visit the AFA website at www.afa.asn.au

31 July 2012

The post Final Call for AFA Award Nominations – close today! appeared first on AdviserVoice.

Now in its eighth year, the Award invites advisers from across the industry to nominate the best new advisers they know or work with.

To be considered a Rising Star, young advisers need to:

• Demonstrate high levels of advisory skills and knowledge
• Have been working as an adviser for three years or less
• Be based in a practice, either as an employee or as a principal
• Provide quality/holistic advice
• Have made contributions to the community
• Have contributed to the industry
• Have an appropriate educational background and qualifications.

Richard Klipin, Chief Executive Officer of the AFA, said: “At a time when our industry is going through great change, it’s important for us to recognise and celebrate some of the outstanding new blood that’s coming through.

“Every year we’re overwhelmed by the calibre of the advisers nominated. They’ve come from all parts of Australia, and from a diverse range of professional and educational backgrounds, but they share an energy and passion that will do great things for our industry in the future.”

The Award has been sponsored by OnePath since its inception. Commenting on their involvement, Gerard Kerr, OnePath’s Head of Retail Product Marketing and Reinsurance, said: “We’re pleased to once again be supporting such a worthwhile and prestigious award.

This is the eighth consecutive year we’ve sponsored the Award, and it is our way of helping recognise, celebrate and support tomorrow’s leaders.

Mr Kerr said the Award continues to unearth some remarkable individuals. “All of them deserve to be acknowledged for their outstanding contribution to their clients, their industry and their community.”

Nominations for the Award can be made online at www.afarisingstar.com.au before 31 July.

Nominees must be members of the AFA, and the winner will be announced at the AFA National Conference on 28 October 2012.

The post AFA begins search for its next rising star appeared first on AdviserVoice.

The OnePath Australian Shares Trust and the OnePath Select Leaders Trust were assigned four-star ‘NEW’ ratings while the OnePath Blue Chip Imputation Trust was assigned a three-star ‘NEW’ rating. 

In February 2012, OnePath Funds Management Ltd., as responsible entity, announced its decision to move to an investment-manager partnership model. This follows last year’s acquisition of ING Investment Management (INGIM) in Australia by UBS Global Asset Management (UBS Global AM). The former ING single sector funds were rebranded OnePath funds; these funds will now be managed by a group of specialist investment managers. 

UBS Global AM has been selected to manage OnePath’s Australian-equities large-cap funds including the OnePath Australian Shares Trust, the OnePath Select Leaders Trust, and the OnePath Blue Chip Imputation Trust. These funds were previously managed by INGIM. 

Despite a number of changes in the UBS Global AM organisation in Australia, UBS Global AM has a strong and experienced Australian-equities team. The large companies team is now led by Jakov Males who is also the portfolio manager for all Australian-equities large-cap strategies. We hold Mr. Males’ portfolio-management skills in high regard and expect these funds to benefit from them in future. 

The three-star rating of the Blue Chip Imputation Trust relative to the four-star ratings of the Australian Shares Trust and Select Leaders Trust, reflects the fact that the former is a new strategy for the UBS Australian-equities team and represents the portfolio manager’s first time running one with an imputation focus. 

“While we believe the UBS investment process, with its emphasis on sustainable mid-cycle cash flows, is well-suited to an imputation-style fund, the lack of a track record in this strategy constrains our conviction relative to higher-rated peers who have run such a strategy for a number of years. We will be looking for UBS to be on track in its ability to meet the fund’s dual objectives, while adhering to risk limits, in order to raise our level of conviction for this fund,” said S&P Fund Services analyst Aniket Das.

The post S&P removes from ‘On Hold’ & rates three OnePath Australian Equities Trusts appeared first on AdviserVoice.