Show Notes
In this episode of My Risk Adviser, Phil Thompson and Trent Bacon dig into what is actually happening in the insurance advice market, and why risk advice is becoming more specialised than ever.
With fewer advisers writing the majority of new insurance business, increasing product complexity, tougher underwriting, and rising premiums, the traditional approaches to risk advice are being challenged. Phil and Trent explore the different models advisers are using today, from specialist risk firms to holistic practices, and the trade-offs that come with each.
If you are wondering where insurance advice is heading, who is really writing the business, and how advisers can adapt without increasing risk or compliance exposure, this episode will get you thinking.
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Zurich has knocked back TPD claims from three AFL players whose careers were ended by concussion, and the footy media is up in arms about it. We get why it looks bad. But these policies pay out on an activities of daily living definition, and it's hard to argue you can't read, write or communicate while you're studying an MBA at Oxford. Trent and Phil talk through what actually happened. The three TPD definitions and why AFL players only ever get the strictest one. Who set these policies up in the first place and why the premiums for anything better would be eye-watering. Zurich pulling concussion cover altogether from 1 May. The AFL's own $54 million injury fund. And James Brayshaw's claim that Zurich makes $10 billion in profit, which is out by quite a lot.
Every week, Phil and Trent dig into the My Risk Adviser Facebook group to pull out the most interesting questions and debates from real risk advisers dealing with real problems.
Zurich’s pricing changes are being framed as aggressive, but from an actuarial lens, they’re a response to worsening pool dynamics. Duration-based discounting pulls forward profitability, while lapse-supported pricing assumptions break down when persistency improves among higher-risk cohorts. The result is predictable. Loss ratios expand and repricing follows.
Most advisers aren’t short on CPD. They’re just not capturing what’s already happening.