So intoned Bob Dylan in his famous protest song of the 1960s – and so it is here with the financial services industry and disruptive technology.

With Fidelity Life raising $100 million to fund development of their digital capability, it’s perhaps worth taking some time to consider the issues.

For years now, life companies have been plagued by the speed at which technology evolves. No sooner has the board of directors approved the capital expenditure for the new processing system, CRM system, or work-flow engine, than those pesky innovators render the approved project obsolete.

With luck, only minimal capital has been deployed before the technology direction has to change. More than likely, it is too late to change tack as resources have been hired, money has been spent, and the game is afoot.

The continual dilemma facing the chief executive and the board is when to invest and when to consolidate. Lack of investment can leave the company lagging behind more agile newer entrants, and failure to consolidate can leave systems underdone, incomplete, and unable to handle product innovations.

Suggestions that Fidelity – and others – may be girding their respective loins to invest in digital disruptive technology to penetrate the consumer market directly without the presence of intermediaries is perhaps premature.

Over the years, in Europe and the USA, providers have developed kiosks, stands, booths, in-store counters – all intended to stimulate a different distribution methodology to consumers.

But none of these alternatives has ever come anywhere near challenging the dominance of the intermediated channel in the distribution of life insurance products.

Even the online product platforms struggle to remain viable – and in many cases, of course, simply don’t, and while so-called roboadvice offers a seemingly low-cost "fix" to the regulators, the likely impact on the dominant life insurance adviser channel is at best uncertain, or possibly even minimal.

Given the failure rate and the burnt capital in such initiatives, I suggest that smart advisers will see rob-advice as a lead generation mechanism.

Figures from the USA in the investment space suggest that these platforms attract low-average-balance investors which would likely be of scant interest to investment advisers anyway.

However, great oaks from small acorns grow and – here comes the lead generation piece – smart advisers might think about developing their own roboadvice platform to prepare for the day when those balances need more of the human input to achieve optimal investor outcomes.

For life insurance advisers, the competition from online platforms has been around for years.

But unlike, say, KiwiSaver, life insurance is a grudge purchase and the design, development, and implementation of an effective and durable personal financial risk management plan just hasn’t figured on the grocery list (supermarket) or with the socks and ties for Christmas purchases (department stores).

Certainly, the kiosks and booths generated some sales – and might even generate more if available online for the Millennials – but the lapse rates are horrendous, and pricing for a 50%+ lapse rate renders the products cost-ineffective.

But perhaps the times are a’changing for the life companies – but not in the sense that they seek alternative distribution channels, but that they propose investing in disruptive digital technology to lift the intermediary channel to an even greater dominance of the market.

As the grey-haired advisers are contemplating the attraction of the new regulatory regime and tossing up between golf, fishing and holidays or studying for new qualifications, CPD points, and potential compliance investigations, I suspect the younger generation of CEOs are contemplating the digital capabilities that will attract new young advisers to the industry.

Create an environment where business is easy to transact – driven by leading-edge technology – and the younger generation will see this as a distinct attraction.

Here’s another thought to ponder. For years, advisers have pushed for ever more complex, comprehensive, all-singing/all-dancing products to cover every possible occurrence to protect the financial well-being of their clients. Rating houses survive and thrive on the meritorious analysis of comparative product features, benefits, wordings, and pricing.

But a recent trend has been the emergence of "no-frills" life cover not intended to be top of the charts, but aiming to fulfill a relatively simple need for quick and easy cover to be granted via a technology platform.

But rather than cut the adviser out of the deal, the product providers give the adviser unique access capability so that clients can go online, arrange quick and easy cover themselves, with the adviser suitably compensated by a link to the unique access functionality.

Similarly, presenting simple life insurance products for KiwiSaver clients – not integrated, but separate, stand-alone cover – where the cost for hundreds of thousands of life insurance amounts to a few dollar per week, is also emerging.

This won’t make either the adviser or the provider mega-rich, but it will give the adviser an ideal opportunity to pull the client just that little bit closer, and engage in longer-term planning where a full personal risk financial plan can be developed when the time, the earning capacity, and in the investment capability, is exactly right.

Of course, such products are only viable if advanced technology is the means of presentation and delivery.

So while the traditional view – in this market at least – that product providers are investing in technology to go to the consumer directly and bypass the intermediary - perhaps needs to be re-visited.
Furthermore, any mechanism that enhances, stimulates, and elicits response from the consumer should be welcomed by all advisers. Awareness and increased financial literacy will benefit advisers who are attuned to consumers who are looking for further guidance, input, and information.

Indeed, the times they are a’changin……..

David Whyte is chairman of Camelot Group, former chief executive of Ginger Group, former managing director of AIG Life Australia and former general manager of AIA in New Zealand.