Poll Results – Uncertain Future for LIF

Adviser uncertainty about the future of the proposed Life Insurance Framework reforms dominates our latest poll.

Responding to our question on what will happen to the proposed LIF reforms following the Federal Election, the most popular response has come from the 32% of advisers who have said the future of the reforms is simply too difficult to predict.

Understandably, we expect the cliff-hanger result in last weekend’s election (the final outcome of which remains undecided as we go to print) has done nothing to alleviate the uncertainty that exists within the life insurance community about the future of these controversial reforms.

While one in three advisers can’t predict what will happen with the proposed LIF reforms, many of the remaining two thirds think there will be little-to-no change to what was tabled in the Senate prior to the July 2 election being called: 27% say there will ultimately be no changes to the proposed legislation and another 17% think there will be minor changes only. On the other hand, almost one in four advisers think there will be either significant changes (11%) or entirely new legislation created (13%).

The current FOFA law is more than adequate to deal with issues…

While the industry remains in a state of limbo about the future conditions under which it will operate (and the timing of the implementation of those conditions), comments we received from advisers during the last week relate mostly to disillusionment with both the proposed reforms and the circumstances and process that led to their creation in the first place. They mostly advocate a return to the status quo:

“LIF is … a waste of time, energy and effort… The current FOFA law is more than adequate to deal with issues…”

“The best outcome would be that the government of whichever flavour drops the whole thing and we go back to where we were prior to the proposed changes.”

See also: LIF – Where to next?