SMSFs warming to insurance
The take-up of insurance within SMSFs has continued to grow, according to the latest CoreData survey.
One in four advised SMSF members have taken up insurance through their self-managed fund this year, according to CoreData’s 2013 risk report which surveyed 647 advisers between September and October.
However, risk written within super broadly has remained “virtually unchanged,” with less than half of advisers saying they wrote risk within super over the past year.
The proportion of financial adviser income derived from insurance advice has also grown steadily, despite a slight shift away from commissions, according to the survey.
CoreData found that risk business has grown to 55.9 per cent in 2013, up from 40.4 per cent in 2010, with particular growth among new clients.
The report also indicated that administration services are the most sought-after service provided to advisers from life insurer business development managers.
“This ties in with the importance that advisers have placed on support services from their licensees over the past 12 months, as identified in CoreData’s broader adviser research,” said Mr Saiz.
“We expect this to be the case going forward over the next 12 months as the reforms are digested.”
