CALI has renewed its call on the Government to pass legislation which will allow insurers to deliver simple advice to consumers about their own products.
This is the key outcome the peak life insurance body is seeking in its call this week for the Government to implement tranche two of its Delivering Better Financial Outcomes reform package without any further delay.
The council warns Australians will face a chain reaction of financial uncertainty over generations if the proposed advice reforms aren’t legislated before the next federal election, noting that it is raising the alarm about the generational impacts further delays may have.
…there exists an advice accessibility crisis in this country
In noting there exists an advice accessibility crisis in this country, CALI CEO, Christine Cupitt, says without these reforms, millions of Australians and their families “…will be left behind in financial limbo.
“Doing nothing won’t just hurt today. It’ll set in motion a chain reaction over the next 10, 20 and even 30 years as many Australians remain priced-out of getting the right advice to secure their financial future and look after their loved ones.”
CALI says independent research it commissioned demonstrates the financial advice needs of Australians are not currently being met, particularly for those who can’t afford to pay for a financial adviser in a cost-of-living crisis (see: More Ways to Access Financial Advice Critical).
The data highlights more than 40% of Australians want advice that’s more personalised and helps them make a decision about how much cover they need and the products that are best suited to them.
It notes that under the proposed reforms, this is the kind of advice life insurers would be able to give their customers about their own products when they ask for it, and at no extra cost to the customer.
…the barriers to getting advice remain too high…
Under current laws, notes the council, life insurers are unable to legally provide customers with simple advice when they ask for it. Instead, it says they’re restricted to providing advice that is general in nature only, which in many cases isn’t what the customer has asked for.
It states less than a quarter of people say they want basic or general information only, proving how critical financial advice reforms are to giving Australians the kind of advice they want.
In its statement, CALI reiterates the current barriers to getting advice remain far too high:
“Australia’s life insurers just want to be able to provide simple advice on their own products when people ask them to…”
Ah, a good con always involves simple solutions to complex problems.Just ask Donald Trump
Perhaps CALI might explain to us what is their definition of "simple advice"
Who would know? CALI doesn't seem to engage with Risk Specialist advisers.
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