AIA Calls for Law Change to Ease Pressure on Advisers

A call for legislative change, so life insurers can streamline the advice process and reduce duplication, was made during part two of the AIA Australia Round Table – Advice at the Crossroads.

Round Table co-host Pina Sciarrone, the firm’s Chief Retail Insurance and Advice Officer, said better integration between advice practices and insurers was overdue, with fact-finding often duplicated – adding to the work of advisers.

“If advisers or their licensees are saying you need to go out to all eight or nine insurers for a pre-assessment, we need to make that easier,” she said.

The adviser is asking the client a whole lot of questions, and then the insurer is asking them to complete those questions again…

“The adviser is asking the client a whole lot of questions, and then the insurer is asking them to complete those questions again through the application process.

“There’s absolutely a role for insurers to play here with technology. There needs to be a better integration so there’s a transfer of information advisers have already got from the client.”

She said that while existing technology can deliver immediate improvements, Sciarrone stressed that legislative reform is needed.

“Advisers are so concerned about following safe harbour rules and making sure they’re covered, that the industry is lacking innovation, and lacking the ability to produce simpler, more sustainable products that could respond to the TPD claims issues we are experiencing today,” said Sciarrone.