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[WATCH] Now is not the time to sell an advice business

3 Jun, 6:04am

Insurers are worried about the drop in new business levels and a growing trend for advisers to leave the market.

Partners Life chief executive Naomi Ballantyne says the latest industry figures show that new business levels have continued to fall.

This is across the industry and AIA have also confirmed, when it launched its Starter Plans that new business volumes were down.

Ballantyne says part of fall in new business is due to banks selling their life insurance operations.

But also many of the traditional lead sources, such as mortgage advisers has dried up.

Ballantyne is worried that advisers are now rushing to sell their businesses.

While part of the reasons is declining sales volumes regulation is also having a negative impact.

“It could be the start of a race to the door and that worries me as I don’t think it’s the right thing for those advisers,” she told GRTV.

She says it is the wrong thing for those advisers to do as businesses will be sold at fire-sale prices.

“The value of what you’ve built up will never be lower.”

Ballantyne is encouraging advisers to get licensed. If they do not hold a licence when the new regime kicks in next year their trail commissions will stop.

“Getting a licence adds value to your business.”

“I’m worried people are making short term decisions.”

Watch the full interview on GRTV here.

Good Returns TV · [GRTV] Now is not the time to sell an advice business
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