The Australian life insurance crisis

Financial services research provider Rainmaker information data recently showed that in 2018 there were 18,882 Financial Advisers who were registered to provide life insurance advice. In March 2022, the figures showed that this number had dropped by more than 26.5% to 13,821.

Strict rules and an education blitz have forced many aspiring Advisers out of the industry, creating a service shortage.

The average Australian cannot afford the resulting sharp increase in service fees, leaving this critical advice to be unreachable and unaffordable.

After Senator Jane Hume backflipped on many mandatory education policies, many Advisers say that Hume’s new educational requirements, designed to release pressure, are too little, too late.

The Financial Standard Advice recently conducted a survey of Advisers which showed that out of 140 responses, 64% said that the time commitment, reduced profitability, and government reforms, have pushed life insurance out of their offerings.