pricing Tag

Unless you’ve been under a rock, you’ll be aware that there are significant changes coming very soon (January 1st) to the life insurance industry - changes that will have a very real and immediate impact on advice businesses. I have recently finished a series of workshops around Australia, talking with advisers about what the new life insurance framework will mean to their business.

For advisers providing advice on insurance, it has traditionally been difficult to price that advice. While commissions largely remain post-FoFA, they are banned on some types of personal insurance. In my revised edition of Pricing Advice, I have devoted a much larger chapter to this area. An excerpt from this chapter has run in this month's edition of RiskInfo, which you can read here, and it is also reproduced below...

We are often asked by advisers to take a look at their pricing model and let them know if they “have it right”. This begs the question, “is there such a thing as the right pricing model?” The answer is “yes”, although what is the “right” model will vary for every firm. So here is a list of questions to ask yourself when considering whether or not you have got your pricing right:

There's an arguable quote if ever I heard one.... "A change is as good as a holiday". Whilst I would be the last to agree that I could get just as much fun from changing the car I drive or the clothes I wear as I could from a week on the ski slopes of the French Alps, there are a bunch of changes that I am indeed looking forward to. When it comes to the changes that many advisers are making in their businesses right now, I'd be the first to say that if they do them well, the result could be better than a holiday. Could in fact, put them in a position to take more holidays - and relax to enjoy them - more often!