The Adviser-Client Relationship Report 2019

Insights into the attitudes, behaviours and expectations of current and potential advice clients

Summary

Here you will find just a few of the key insights that will feature in our full report to be released in September.

The report, based on the largest research study of its kind in Australia, will provide a comprehensive view of consumers’ and SMEs’ attitudes towards advisers, their level of confidence about their life insurance, along with actionable insights to help advisers build long-term relationships.

Why clients choose an adviser

Honesty and trustworthiness
Transparency about fees and commissions
Level of adviser experience

The main reasons for seeing an adviser

Consumer with life insurance

SME with life insurance

Want to protect their family

Got a referral or suggestion from family or friend

Consumers who reviewed their life insurance in the last 12 months are 2.1 times more likely to recommend their adviser than those who didn't

Changing and leaving advisers

3 in 10 consumers

with life insurance are considering either changing their current adviser, or stop seeing their adviser in the next 12 months.

5 in 10 SMEs

with life insurance are considering either changing their current adviser, or stop seeing their adviser in the next 12 months.

Why clients leave their adviser

Fees were too high
Lack of affordability
No ongoing need for insurance
Lack of contact

Commissions

While the majority of those surveyed were aware insurers pay commissions to advisers, many did not know how much they receive.

Consumers with life insurance

did not know how much advisers receive in commissions for their life insurance policy

SMEs with life insurance

did not know how much advisers receive in commissions for their life insurance policy

3 in 5 people believe that more Australians will be under-insured if commissions were removed

If commissions were removed in the future most current clients wouldn't expect it to change their willingness to continue using an adviser

Consumer with life insurance

SME with life insurance

More likely to see a financial adviser

Less likely to see a financial adviser

Would not make a change

Don’t know

Methodology

The highlights featured here come from an in-depth online survey completed in June 2019 with 1,298 respondents. Specifically:

797 consumers who have life insurance purchased through a financial adviser;
213 Small to Medium Enterprises (SMEs) with 2-20 employees who have life insurance purchased through a financial adviser; and
288 consumers who are very likely to see a financial adviser about life insurance in the next two years

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MetLife Australia is the winner of ANZIIF Australian Insurance Industry Awards 2019 – Life Insurance Company of the Year.

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The Adviser-Client Relationship Report 2019

Summary

Why clients choose an adviser