Advisers urged to raise their voices

CommInsure is backing a campaign of direct action on the part of financial planners in support of advice underpinning insurance sales and closing Australia’s continuing underinsurance gap.

CommInsure’s general manager of retail advice, Tim Browne (pictured), has authored a resource kit to be distributed to advisers that not only points out the key statistics around Australia’s underinsurance problem, but also advocates that advisers take their arguments directly to Federal politicians.

The handbook argues that the advisers “can have a voice in Canberra” via their local Federal Member of Parliament.

“Whilst a number of Government reviews have already been undertaken, it is not too late to promote the value of advice to your local Federal Member of Parliament and highlight the potential impacts of any policy changes that make it harder for their constituents to access and/or afford financial advice”, the handbook stated.

The handbook will be distributed to advisers as part of CommInsure’s broader roadshow process.

For his part, Browne has reiterated that CommInsure remains opposed to any ban on commissions on retail insurance options and that “[it] supports flexible payment options for clients, enabling them to decide how to pay for advice, and [it] considers commissions a sensible choice for many Australians”.

He said that CommInsure believed that many Australians would not seek advice if forced to pay an upfront commission, “and consequently those individuals will have insufficient insurance in place at claim time”.

“We consider default insurance within superannuation to be a good basic safety net for members, and while beneficial, it has traditionally been very low,” Browne said. “CommInsure therefore endorses the Cooper Review panel’s recommendation to expand trustee responsibilities around the selection of appropriate levels of default cover.”

“However, we believe that the best client outcome will come from a needs-matched advice process tailored specifically for each client, as each client’s needs are different to the next,” he said.

“Importantly, the role of the adviser also extends to motivate the client to act and then implement the recommendations on the client’s behalf.”