Considered automation is key in slowing risk market

As more advisers embrace technology to achieve greater efficiency in writing risk business, one adviser warns that they shouldn’t assume more technology equates to less work.

The glory days may be over for risk advisers but, according to new research, the next 15 years will still see market growth – albeit at a slower rate.

Rice Warner’s Risk Insurance Market Projections Report 2012 predicts growth at the rate of 5 per cent a year over the next decade and a half, down from almost twice that level – 9.8 per cent a year – over the past 15 years. But its growth rate means it will still be worth more than $22 billion (in today’s dollars) in 15 years’ time.

The value of risk business written in Australia was about $11.3 billion in the 12 months to September 30, 2012. Data released by Plan For Life says the figure was a 10.6 per cent increase on the figure a year earlier.

But it’s not true that new technology necessarily leads to less means less work.

Michael Smith, principal of Adelaide-based Pure Financial Management, says technology can be a two-edged sword.

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