SHARE & Newpark chief executive Craig Winterburn (pictured) remains optimistic about this year’s prospects despite the persistent and potential challenges facing the financial services industry.
“I think, in many ways, 2024 is looking a bit like a ‘rinse and repeat’ of 2023, especially in the realm of insurance,” Winterburn told Insurance Business.
“We’ll probably see a familiar backdrop of local and global economic challenges, changing customer behaviours, and the ever-evolving regulatory landscape that will continue to shape the way we provide support and advice to our clients.”
The challenges, according to the CEO, include likely talent shortages, not only among advisers themselves but also in terms of administration staff and compliance support.
“Unfortunately, we’ll also still see some fallout from the cost-of-living crisis,” Winterburn went on to say about the obstacles that lie ahead.
“With insurance premium increases, increased claims (both in numbers and complexity), and strain on households’ incomes due to mortgage repayment increases, etc., we anticipate that a segment of customers may choose to cancel or want alterations to their insurance coverage, particularly if individuals find themselves in a vulnerable financial position.”
Winterburn believes that, as a result, the insurance sector may experience a surge in customer complaints as clients navigate the challenging circumstances.
On the flip side, the SHARE chief is keen to see what the year brings by way of opportunities. “Despite those challenges, there is a lot to look forward to in 2024,” he said.
Winterburn cited indications that we should start to feel the effects of a post-pandemic global economic recovery possibly towards the back end of 2024. This will drive what he called a “much-needed” boost in customer confidence, growth, and investment.
As for labour market concerns, the CEO highlighted the other face of the coin: the fact that the regulatory reforms are helping to attract new talent.
“A significant opportunity arising from regulatory changes is the influx of well-qualified, enthusiastic, and talented individuals entering the financial advice sector,” Winterburn told Insurance Business. “The requirements set by regulation have lifted the bar on the perceived professionalism of the sector, which is attracting a new wave of advisers.
“At SHARE, we have experienced a dramatic increase in the number of enquiries from new advisers entering the industry, which underscores the appeal of a profession adapting to meet regulatory demands, but also reflects the positive momentum in the financial advice sector.”
Winterburn expressed his camp’s commitment towards supporting and nurturing these new advisers – ensuring they have the tools, resources, and pathways to business ownership and helping them thrive.
Other opportunities, meanwhile, relate to digital integration in the delivery of financial advice and service, as well as to initiatives with a focus on actively improving financial literacy in New Zealand.
The key to it all, Winterburn said, is finding the balance in navigating the day-to-day management of a financial advice practice – from overseeing operations to providing service to existing clients while at the same time acquiring and advising new ones.
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