Insignia CEO says priority is extracting efficiency

Mike Taylor

Managing Editor/Publisher, Financial Newswire

22 November 2024

Insignia Financial has scale but it needs to drive efficiency, according to chief executive, Scott Hartley.

Hartley has reinforced to the company’s annual general meeting that Insignia will be front-running MLC as its core consumer brand particularly in superannuation but that driving economies of scale represents its immediate priority.

“We have size, but we have been restrained by complexity and inefficiencies, and we are yet to realise the benefits of economies of scale or our growth potential, which is critical for our long-term sustainability,” he said.

While having earlier this month outlined Insignia’s strategy through to 2030, he said that the top priority was on executing the simplification and optimisation measures it had committed to implementing by the middle of 2026.

Hartley emphasised the importance of superannuation to the strategy saying the superannuation industry is structurally positioned for long-term and sustained growth.

He also said that there had never been a better time to be in advice and that Insignia intended to increase adviser efficiency to help its advisers meet the advice needs of more Australians.

“We plan to grow our superannuation business by improving our cost competitiveness, and developing and marketing a new digital direct channel, to encourage more Australians to choose MLC for their superannuation needs,” Hartley said.

“As the superannuation system becomes more focussed on income in retirement, we will launch innovative solutions into our Wrap and Superannuation offerings,” he said while declaring that the firm would also use its asset management capability to create investment portfolios for a broader range of solutions and platforms.

Hartley said that Insignia owned some of the strongest brands in the wealth industry but was intent on moving from operating nine brands to just three.

“There is strength and reputation in the MLC brand, which will be our primary consumer brand moving forward and we will progressively retire our other consumer brands,” he said.

“Our simplified brand offering will reposition MLC in the market, turning latest awareness into active consideration, as well as supporting the Shadforth and Bridges advice brands.”