November 20, 2018
Do you think life insurance commissions will eventually be banned in Australia?
- No (57%)
- Yes (30%)
- Not sure (13%)
The majority of advisers believe risk commissions will not be consigned to history.
During what may be remembered as one of the darkest-ever periods for the reputation of life insurance advice in Australia, a resilient 59 percent of those taking our poll believe that life insurance commissions will be retained. 28 percent think time will eventually be called on risk commissions, and 14 percent think it’s too close to call.
…very few, if any, of the revelations at the Royal Commission have involved advised life insurance scenarios
If there was ever a time to speculate on what many may consider to be the unthinkable idea that risk commissions might be banned, now is that time – especially given the intense bright light being shone on unacceptable industry practices, courtesy of the Financial Services Royal Commission. (We note, though, that very few, if any, of the revelations at the Royal Commission have involved advised life insurance scenarios.)
Numerous advisers have predicted over time that risk commissions will eventually be banned. They think it’s inevitable. Our poll results, though, place these numerous advisers still in the minority, with most envisaging a more pragmatic future in which risk commissions will remain. By implication, these more optimistic advisers are saying they think Australian consumers will still have the choice of accessing advised life insurance solutions.
We thank passionate NSW adviser and MDRT stalwart, Guy Mankey, for adding this comment to our story last week, which encapsulates much of the sentiment expressed to Riskinfo on this question:
“Should they be banned? No. Will they be banned? With the vested interests involved, quite possibly. And sitting back thinking it can’t happen will only give those seeking a ban the opportunity to get their way.”
Guy’s message to his peers is simple: If you want life insurance commissions to continue, make your voice heard.
Our poll remains open for another week and we welcome your thoughts on this critical question…