Australia’s life insurers have announced the formation of a dedicated life insurance industry peak body, the Council of Australian Life Insurers (CALI).
Set to be launched later this year, the new representative body is intended to be “…the collective voice of the life insurance industry, with a focus on meeting the evolving needs and expectations of its customers, partners, stakeholders and the community, and supporting the ongoing progress and development of the industry.”
A spokesperson for CALI said “Throughout a continued period of policy reform in the lead-up to and following the Royal Commission, the life insurance industry has undergone significant change, including structural changes via industry consolidation and specialisation.
…the time is right to form a dedicated peak body to focus solely on matters affecting the life insurance industry and its customers
“Given the changing landscape in both regulation and structure, as an industry, we believe the time is right to form a dedicated peak body to focus solely on matters affecting the life insurance industry and its customers.”
In addition to upholding existing industry standards and practices, CALI says it will initially be focused on:
- Continuing to lift consumer standards within the industry through professional standards and codes of conduct
- Advocating for Australians to have access to appropriate, affordable and sustainable life insurance protection throughout their lives
- Informing Australians and key stakeholder groups about the role and value of life insurance
- Seeking opportunities for the industry to further contribute to the community.
A statement from the new body says insurers have noted that the Financial Services Council has played a critical role in representing the life insurance industry during a period of significant change in Australian financial services, and that it expects to continue to have a close working relationship with the FSC on a range of financial service matters to deliver the best life insurance outcomes for all Australians.
FSC CEO Blake Briggs said the council welcomes the formation of a sector specific association that will collaborate with the FSC and complement the FSC’s broader representation and advocacy on behalf of the financial services industry.
CALI is currently being established with recruitment under way for a CEO and staff, with more information expected to follow in due course.
Membership of the body is comprised exclusively of life insurers, but the spokesperson says the new body will work constructively with the other various representative bodies.
All of the following life insurers have indicated an intention to become members of CALI once the organisation is formally established:
- AIA Australia
- Challenger
- ClearView
- General Reinsurance Life
- Hannover Re
- Integrity Life
- MetLife Australia
- MLC Life Insurance
- Munich Re
- NobleOak
- Pacific Life Re
- QInsure
- RGA Reinsurance
- Resolution Life Australasia
- SCOR Life & Health
- Swiss Re
- TAL
- Zurich Financial Services
Very interesting! It appears that the FSC has let the side down if a new body needs to be set up to do what the FSC was supposed to do. More bureaucracy means more red tape as each body will endeavour to push their own barrow. Looking at the all the insurers that have shown an interest to join CALI why not get rid of the FSC? Seems a duplication of resources here! Let’s see what other advisers think.
The CEOs of the life companies and their associated execs lost me when they failed to support life advisers through the reduction in commissions and the increase in clawback to 2 years. Lost me and a significant number of advisers completely. I watched as they sat. Just sat and did nothing to support advisers to fight those changes. The changes profited the life companies so they just sat. They blamed the politicians, all the time never mentioning what influence the companies themselves may have over the whole mess. They could have and should have done much more. Now, here we are . . .
Well, that’s when I stopped writing business and I decided I would just sit. Sit and look after my existing clients. Didn’t write new business after that at all. Stopped chasing business for the life companies. It just wasn’t worth my time anymore, 60/20 and 2yrs – I was not alone in this thinking as we now all painfully see. Disgusted with them, I was. Still am.
Oh, this new CALI thing? So what?! Just the FSC by any other name. The FSC only existed so life companies could feel stronger together to push their agenda, just like when they won the 60/20 reduction and 2 yr clawback. Yep, they celebrated that profusely behind closed doors. They could have done a lot more then to stop both of those. They absolutely shafted advisers to save a few pennies on commissions. Just despicable – and stupid – look what has become of life company profit now – without their advisers bringing them new business! Hardly any advisers left to even help keep business on the books due to ridiculous premium increases. The life companies have totally stuffed it all.
Oh well, they’re paying for it now and window dressing like the FSC or CALI or whatever leaves me cold and uninterested. It is the CEOs and execs that have stuffed this industry as much as any politician or vested interest consumer group.
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