RI Advice Group restricts insurance APL
|
|
ING-owned dealer group RI Advice Group has restricted the number of insurers on its Approved Product List (APL) to six preferred insurers.
The six insurers are ING, CommInsure, Asteron, MLC (including Aviva), Macquarie and AMP. Off the list are AXA, AIA and Tower, while BT and Zurich chose not to compete in the process.
Col Fullagar, RI Advice Group's national manager of risk insurance, conducted the process. Fullagar undertook the same process at Genesys Wealth Advisers during his time there.
The difference between the two lists - the first of which was created in 2006 - is that Tower is now off, and Macquarie and AMP are on. Fullagar excluded AXA from both, and there was friction when AXA was then added to the Genesys APL following the insurer's acquisition of the dealer group.
Fullagar said in this most recent process the uncertainty regarding AXA's future ownership was one factor taken into consideration. However it's likely AXA products will eventually trickle into the APL via an acquisition of the group by either National Australia Bank (MLC) or AMP, both of which are included on the list.
Fullagar said each of the 12 mainstream insurers were invited to make a submission to RI Advice Group regarding the client and adviser-focused services and facilities they could provide. Of particular interest to Fullagar were the dispute resolution measures in place at each of the insurance companies, which he said were the key to good consumer engagement because they would help improve situations where claims were dismissed or challenged.
Fullagar said remuneration arrangements between the insurers and the dealer group were not discussed at this initial stage. Fullagar said he wanted to dispel any perception of insurers "buying their way onto the APL".
The group will now seek to discuss improved remuneration terms with its preferred insurers.
The group also chose not to discuss product specifics at this stage - something that Fullagar said would be covered during the construction of the APL.
The final list was constructed both from the submission responses and feedback from RI Advice Group advisers.
Fullagar said this main, restricted APL would cover all standard products, while a supplementary, broader APL would be provided for specialised areas such as insurance for minors, older clients, or certain occupations.
Recommended for you
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.
