Exactly how financial planning practices and dealer groups will approach their insurance strategy in 2013 has come into sharper focus this month with some new entrants to the market and significant changes to existing business models.
Specialist life insurer TAL recently announced the launch of Affinia, a risk-specialist dealer group, with head Craig Parker telling Professional Planner Online that the company had identified “a gap in the market”.
Affinia has ambitious plans to be the leading dealer network for advice risk specialists and is looking to partner with advisers who are specialists in risk and who want an alternative to a traditional dealer group.
“From talking to risk specialists around the country, we know there are many advisers out there who feel left out in the cold by the traditional dealer groups,” said Parker.
“They’re fed up of being the poor relation of their wealth management cousins, and bored by the same-sameness of most dealer groups.
“We want to shake things up. We’ve designed Affinia from scratch based on adviser feedback about what’s important to them so we can stand out in a market which offers little differentiation or specific tools and support for the true risk specialist.”
Sounding board
Parker (right) added that a number of advisers had been sounded out over the past three months with a view to adding to an initial 55 authorised representatives from TAL-owned Pivotal Financial Advisers, which has been rolled into the new entity.
Affinia will offer a number of features which Parker believes will be attractive to the risk-specialist adviser, including a flat fee structure and commissions paid weekly. Underwriting pre-assessment services, business planning and legal services and marketing support will also be offered.
Brett Clark, TAL’s chief executive officer, Retail Life, said the risk-specialist dealer group would complement the existing TAL business.
“Affinia has the full support and backing of TAL,” he said. “We will leverage the strengths of the entire organisation and our expertise in life insurance to ensure that Affinia is a success for advisers and the customers it serves.
Sydney, Brisbane trailblazers
Fellow new entrants to the market, Mortgage Choice Financial Planning, have announced that its first financial planning franchises are now open for business.
While operationally ready in October, trailblazing franchisees, Brisbane-based Kayla White and Sydney’s Fairien Azeem have this month begun writing business.
“Our first financial advisers have really hit the ground running,” said Mortgage Choice Financial Planning general manager, Tania Milnes.
“On top of their existing customer pipeline and the strong lead flow from the mortgage broking side of the business, they are receiving a steady stream of risk insurance enquiries from Mortgage Choice’s … website.”
Financial adviser, Kayla White, was working closely with a Mortgage Choice franchise, looking after their risk insurance, superannuation and investment referrals when she was approached to become an equity partner.
Having worked in the industry for ten years, Kayla was eager to open her own business.
“It’s fantastic to be working in a franchise system alongside mortgage brokers – helping ensure our customers protect themselves as they increase their debt levels,” she said.
The business appears to be on track to achieve its target of having 10 Mortgage Choice Financial Planning franchises open to test its systems, processes and proposition before the full roll-out planned for July 2013.
“Our adviser recruitment criteria is stringent and we are being very picky,” said Milnes.
“We want new generation advisers who share our ideals and passion. People who embrace the post-FoFA world and inherently have their clients’ best interests at heart.”
No risk, no reward
At the other end of the spectrum, Countplus-owned Total Financial Solutions (TFS) has added to its national adviser network, with its co-operative approach offering accountants a risk management strategy.
“Accountants don’t like to do risk,” said TFS CEO Phil Aris (right), adding that the new firms include both institutional and non-institutional aligned advisory firms.
The addition of six financial advisory firms brings TFS’ total network number up to 134, comprising of 49 corporate authorised representatives and 85 individual authorised representatives.
The advisory firms joining TFS include Omega Financial Solutions in NSW, Financial Advisory Group, and McCabe Financial Services in SA, Hunter Financial in NSW, Finstyle Planning Solutions in VIC and Mortgage Administration Services & Your Financial Solutions in QLD.
“In joining TFS, we now have the opportunity to increase our reach with a wider network of accounting firms, access to competitive funding to help drive growth, support from a strong publicly listed company, and an emphasis on refining our business and increasing profits,” said Hunter Financial CEO and director Brian Kennaugh.
New recruits
Countplus acquired TFS in September 2010 to provide insurance referral services to Count Financial. With referrals to TFS advisers growing, the company claims it is no surprise that more advisers are looking to join TFS to take advantage of this opportunity
“We are excited to include these six new firms to our national network,” said Aris.
“Every new firm strengthens our network, financial product selection and business development offering, to the benefit of all.”
TFS plans to continue its expansion throughout 2013, increasing its number of small to medium sized financial services businesses and licensees.
“Our growth strategy is to continue supporting and building our existing practices, while recruiting quality, culturally-aligned businesses,” said Aris.
“As market consolidation continues due to regulatory changes and increasing economic pressures, we expect increased interest in TFS from external advisers and a growth in our adviser numbers.”
Comming from Life Insurance roots, it is not only the licensees that treat life risk specalists as second cousins, take a good hard look at the life companies themselves. First step look at the professional briefingfs that these companies put on. I have been to several one as a CFP where we covered investment topics, where we were provided a three course meal with a selection of wine and a cheas board. Then the very same company put on a life insurance briefing to sprook about how brillient their new insurance product was compared to all the rest. And what was served up for lunch? a cold rap and luke warm coffee. Now that said a lot about them and who they favoured.