The industry has been praised by the group’s independent chair, John Trowbridge, for its engagement in the Life Insurance Advice Working Group’s (LIAWG) review of life insurance advice .
Over 130 submissions have been received in response to the Mr Trowbridge’s Interim Report, which was issued in late December. Mr Trowbridge said the scope and quality of submissions received has been “outstanding”.
The LIAWG was established by the Financial Services Council (FSC) and the Association of Financial Advisers (AFA) to address the issues raised by the Australian Securities and Investments Commission (ASIC) review into life insurance advice (see: Unacceptable Level of Failure). Mr Trowbridge, as independent chairman, has convened numerous meetings of the working group and has consulted with consumer groups, regulators and industry since the LIAWG was formed immediately after the release of ASIC’s Report.
In December, Mr Trowbridge issued an Interim Report, asking for industry feedback on four key areas:
- The quality of life insurance advice
- Remuneration and other adviser incentives
- Insurer practices and product offerings
- Industry productivity
“Engagement by the industry and the broader community has been very encouraging,” Mr Trowbridge said. “Submissions have been received from a wide range of stakeholders including insurance companies, adviser groups, individual advisers, consumer advocates and other interested parties.
The ultimate aims are to ensure quality advice for consumers and improved insurance coverage across the community
“Many have offered views, opinions and suggestions but many have also provided valuable information and analysis, both qualitative and quantitative, on a range of aspects affecting those businesses and individuals that provide life insurance financial advice and the life insurance business itself.”
He added that there was a genuine commitment from the industry to solve a range of complex issues.
“The ultimate aims are to ensure quality advice for consumers and improved insurance coverage across the community. These aims will guide assessment of the submissions and formulation of recommendations.”
Mr Trowbridge will produce a final report for the LIAWG which will include recommendations for change. The report will be made public and is expected to be handed down at the end of March 2015.
