Labor ready to listen on life/risk commissions
The Federal Opposition has foreshadowed supporting changes to insurance inside superannuation to overcome unintended consequences.
As well, it has indicated a willingness to listen to planner arguments around commissions in the context of the Life Insurance Framework (LIF).
Addressing the Financial Services Council (FSC) Insurance Summit, Opposition Financial Services spokesman, Stephen Jones argued that it was possible to fix problems with respect to insurance inside super without changing the overall policy thrust.
He said that there was a willingness to look at some of the undesirable consequences with a view to making the policy work better.
On life advice commissions he said that while Labor accepted the prima facie argument against commissions it was open to be being persuaded on the merits of the issue.
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
