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Adviser Research 2019 Key Findings

Key Findings

The top 15 take aways from Understanding the Adviser-Client Relationship Report 2019.

Key Findings

The top 15 take aways from Understanding the Adviser-Client Relationship Report 2019.

01 Confidence levels amongst consumers and SMEs in being able to explain various life insurance features have increased across the board in 2019.
02 Consumers and SMEs are seeing an adviser about life insurance to protect their family, or following a recommendation from a family member or friend.
03 The most important factors when choosing an adviser continue to be:
• Honesty and trustworthiness
• Transparency about fees and commissions
• Adviser experience
04 75% of consumers and 62% of SMEs first worked out what life insurance cover they needed, rather than looking at how much they could afford.
05 Buying life insurance through an adviser is perceived to provide a higher quality product that is better tailored to individual needs compared with insurance purchased either directly online from an insurer or through a superannuation fund. However, this is also perceived to be more expensive.
06 7 in 10 prefer to pay an upfront fee with lower premiums over the lifetime of the policy.
07 Consumers and SMEs were willing to pay an average of $1,700 for insurance advice.
08 To offset not paying an upfront fee to advisers, 3 in 10 were willing to pay between 1–5% extra in premiums over the lifetime of their policy.
09 While the majority are aware insurers pay commissions to advisers, many don't know how much they receive, particularly consumers.
10 Almost a third of consumers and half of SME’s are considering either changing their current adviser, or ceasing to use one completely, citing their top reasons as:
• High fees
• Lack of affordability
• No ongoing need for insurance
• Lack of contact
11 If looking for a new financial adviser, more than 50% of consumers and SME’s with life insurance would prefer to use an independent adviser.
12 Over 40% of consumers and 60% of SMEs with life insurance have concerns their life insurer would pay out in the event of a claim.
13 6 in 10 undertook a review with their adviser in the last 12 months. Those who had a review are 2.1 times more likely to recommend their adviser.
14 Most indicated that the removal of commissions would not change their willingness to see an adviser. However, they believe this would lead to more Australians being underinsured.
15 If under financial pressure, consumers are more likely to cut back on the following before they let go of their insurance cover:
• Holidays
• Pay TV
• Gym/personal training expenses
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Consumers

We look at consumer attitudes and approaches to personal finance and their relationship with their adviser.

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