{"id":77751,"date":"2025-06-24T22:49:53","date_gmt":"2025-06-24T11:49:53","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=77751"},"modified":"2025-06-30T12:02:09","modified_gmt":"2025-06-30T01:02:09","slug":"anderson-calls-for-80-20","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/06\/24\/anderson-calls-for-80-20\/","title":{"rendered":"Anderson Calls for 80\/20"},"content":{"rendered":"
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The 10-year anniversary marking the announcement of the Life Insurance Framework reforms naturally drew strong interest from Riskinfo readers this week, where the FAAA\u2019s Phil Anderson used this milestone as an opportunity to call for an increase to the LIF commission caps\u2026<\/h3>\n<\/div>\n<\/div>\n

Highly-respected financial services industry figure, Phil Anderson<\/strong>, has called for commission caps under the Life Insurance Framework reforms to be increased to 80\/20.<\/p>\n

Anderson, FAAA’s GM Policy, Advocacy and Standards, made this call in releasing his detailed analysis of the state of the life insurance sector ten years on from the announcement of the Life Insurance Framework reforms by then Assistant Treasurer, Josh Frydenberg (see: The Life Insurance Commissions Journey \u2013 A Historical Perspective<\/a>).<\/p>\n

The FAAA is already on the public record in calling for an increase in upfront commissions for life insurance, as a strategy “…to better enable the delivery of life insurance advice to facilitate more Australians being adequately covered.” The call to move to 80\/20, however, remains Anderson’s personal view, as distinct from that of the association.<\/p>\n

\"Phil
Phil Anderson.<\/figcaption><\/figure>\n

Anderson’s outstanding documentation of the events impacting the introduction of the Life Insurance Framework reforms – and his subsequent assessment of what he sees as its disastrous impact on the advice sector, includes references to key people and events dating back to the implementation of the Future of Financial Advice Reforms, which were borne of adverse outcomes generated by the Global Financial Crisis in 2008.<\/p>\n

His blunt final assessment concludes:<\/p>\n

The journey over the last 15 years for the life insurance sector has been a particularly challenging one with multiple regulatory changes having a negative impact on the uptake of life insurance and a substantial reduction in the number of financial advisers providing risk advice.<\/em><\/p>\n

In the case of the LIF reforms, it was a combination of zealous opposition to commissions, commercial interest and political expediency that resulted in a forced outcome on a small sector that lacked the political power to prevail. The ultimate outcome for consumers and the sector was clearly predictable and was expected by the advice associations at the time. However, this only serves to demonstrate evidence of a poor process that has delivered a poor outcome for Australian consumers.<\/em><\/p>\n

Any reasonable assessment would conclude that the LIF reforms have been an abject failure and have contributed to a decline in the sustainability of the life insurance industry.<\/em><\/p>\n

In updating readers on the debate over whether life insurance commission caps should be reviewed, Riskinfo will next week share the current-day reflections of the key architect behind recommendations made to the then Government in early 2015 which led to the introduction of the LIF reforms, John Trowbridge<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The 10-year anniversary marking the announcement of the Life Insurance Framework reforms naturally drew strong interest from Riskinfo readers this week, where the FAAA\u2019s Phil Anderson used this milestone as an opportunity to call for an increase to the LIF commission caps\u2026 Highly-respected financial services industry figure, Phil Anderson, has called for commission caps under […]<\/p>\n","protected":false},"author":3,"featured_media":77755,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,270,8291],"tags":[],"class_list":{"0":"post-77751","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-associations","8":"category-compliance-regulation","9":"category-remuneration","10":"category-story-of-the-week"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/77751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=77751"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/77751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/77755"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=77751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=77751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=77751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}