Brad Fox
Calls from Industry Super Australia to connect adviser remuneration with the decisions of life insurers on paying claims is inaccurate and unfair according to Association of Financial Advisers (AFA) Chief Executive Brad Fox.
Mr Fox said financial advisers are not, and never can be, responsible for the underwriting and claims decisions of life insurance companies.
“It is unreasonable to apportion blame where it does not belong,” he said. “To link insurance claims decisions to the remuneration paid to an adviser is like blaming a petrol station for a driver who chooses to speed. The two are unrelated and it is nonsense to try and connect them.”
Mr Fox said recent media stories about life insurance claims not being paid involved consumers who do not have a financial adviser.
“These stories in fact highlight the value of arranging life insurance through a financial adviser who can identify life insurance needs, help put appropriate insurance in place and who then becomes their client’s advocate at claims time. This is a far better option than blindly relying on insurance they may or may not have in their superannuation fund or have purchased without proper advice over the phone or internet.”