Advisers, accountants and brokers servicing the SMSF sector are looking for more insurance education, training and information in order to boost their skills.
AIA life insurance general manager Damien Mu said the issue of insurance within SMSFs required specialist advice and practitioners, and those servicing the sector wanted to stay on top of their knowledge and the different offerings available.
“In particular over the last 12 months, I’ve seen a strong trend in growing interest and need,” Mu told selfmanagedsuper.
“As the popularity of SMSFs grows and the market continues to mature, there will be more need for these types of products and specialty advice.
“What seems to be coming through is that there’s a good level of knowledge when it comes to investment, but only more of a general knowledge around insurance, tax and compliance, so this is where that specialty advice comes into play.”
Last year, AIA Australia conducted a survey of SMSF practitioners and found that in relation to insurance, the main barrier was the fund’s knowledge about life insurance offers.
“From our research, 66 per cent of the respondents cited that they just weren’t aware of the potential offers of insurance inside SMSFs, but, that said, 82 per cent expected more of their clients would ultimately get life insurance within their SMSF over the next year,” Mu said.
“It’s definitely a growing area of awareness and as we see broader legislation around super and insurance evolve, it will have an impact on SMSFs as well.
“There’s definitely an opportunity for further awareness and education in the market.”
One of the main challenges to insurance knowledge was the fragmented nature of the SMSF sector, he said.
“It’s not like superannuation where you’ve got all of them on the one platform – there are various platforms and various ways and mechanisms to set up your own SMSF,” he said.
“Being able to get that access to insurance information and what’s on offer out to advisers, accountants and brokers are key.”
He said insurers had been far more active in trying to solve the insurance knowledge gap and, over time, believed there would be more material and resources available in order to support those advising SMSF clients.
