Planners' insurance reach under threat
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Superannuation funds stand to be the major conduit for the delivery of life insurance as a result of the Federal Government’s new intra-fund advice regime, according to the chief executive of Tower Australia, Jim Minto.
Minto told a panel discussion at the Investment and Financial Services Association national conference on the Gold Coast that the intra-fund advice regime had conferred extraordinary powers to superannuation funds to be the dominant distributors of life insurance to Australians.
He said he believed much of the focus of the life insurance industry would coalesce around superannuation funds.
“The superannuation industry has been empowered in a significant way to sell insurance to members and they act on that empowerment,” he said.
The chief executive of Aviva, Allan Griffith, said he believed recent changes could also see a return to the tied advice models more common to the industry a couple of decades ago.
AUTHOR
Mike Taylor
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