AFA supports industry-wide response to life insurance review

Brad Fox

Brad Fox

The Association of Financial Advisers (AFA) has responded to the release of ASIC’s review of retail life insurance advice report (the Report) by supporting the establishment of a cross-industry working group to address the issues identified.

“The release of the Report has been signalled for some time,” said AFA CEO, Brad Fox.  “Given that ASIC’s review of the life insurance industry was focused upon particular risk factors, the Report was expected to highlight examples of poor practices. The AFA has been proactive in seeking the support of other associations and the Financial Services Council to address the findings.”

However, Mr Fox said it is important that the financial advice profession and the broader financial services industry consider the Report in detail and respond in a comprehensive manner.  “This is a key industry report and any report of this nature and magnitude needs to be comprehensively reviewed and analysed,” he said. “We intend to work closely with the Financial Services Council and other associations to establish the working group in order to ensure an industry-wide response.”

The working group will publicly share a broad terms of reference and then report in a reasonable time frame with regard to those terms. “The majority of our members provide life insurance recommendations as a part of their service to clients,” Mr Fox said.

“Therefore, it is vitally important for our members, and for their clients, that we consider all available options at the product, licensee, adviser and consumer levels to address the issues raised in the Report and to ensure that consumers retain their trust in life insurance. It is important to remember that the majority of Australians do not have sufficient life and income protection insurance.”

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