The recently formed Council of Australian Life Insurers has welcomed the publication of the final report of the QoA Review, commending the work of Michelle Levy for her “bold vision and pragmatism”.
CALI CEO, Christine Cupitt, says the report is a crucial step forward in the government’s work to increase the affordability and accessibility of high quality financial advice.
She says all Australians can benefit from timely, affordable, and accessible financial advice, noting “…the life insurance industry stands ready to work with the Government on significant reforms to ensure consumers can get the right advice, when they need it, including advice about their life insurance needs.”
Cupitt adds that CALI also welcomes the Government’s plan to consult further on some aspects of the report and maintain momentum from the QoA Review, and confirms that CALI will participate in that consultation.
The organisation thanked Levy for “… this significant contribution to Australia’s financial services policy settings.”
LIF is killing this industry. That’s a fact. No dispute.
When CALI was formed it sounded like it had promise. Then I looked at the CALI board and noted that it contained at least two if not three of the persons who were on the FSC board at the time it recommended to government that the industry should halve distribution costs for life insurance manufacturers, and go to a 60/20 LIF commission scale
I’ve heard these people talk at seminars. The most polite comment I can make is that I believe they “walk both sides of the street”: depending on the audience.
A good general is someone who can get lucky and score a win but also is one who can recognises when they are progressing slowly towards defeat in a war, and design a tactical withdrawal in order to negotiate terms and stop wasting the troops.
These folks, however, decided to wait on something they’d knew would never happen: i.e., the QAR would recommend a re-introduction of an 80/20 upfront commission scale
Sadly these particular people apparently don’t think it’s yet time to admit the failure of LIF. In the words of Foghorn Leghorn, “short term thinkin, is stinkin thinkin”
Here’s a question: when , if LIF remains unchanged, and the exit of risk Specialist advisers continues, who is going to service all those orphan life risk clients who, on advisers advice, keep paying those ever increasing premiums which constitute the life insurance industry’s version of “the rivers of gold”
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