Mr Trowbridge, who is independent chairman of the LIAWG and who prepared the report, said: “Engagement by the industry and the broader community has been very encouraging. Submissions have been received from a wide range of stakeholders including insurance companies, adviser groups, individual advisers, consumer advocates and other interested parties.”

The submissions address four critical areas identified by Mr Trowbridge in his interim report

• the quality of advice
• remuneration and other adviser incentives
• insurer practices and product offerings, and
• industry productivity.

“The scope and quality of submissions has been outstanding. Many have offered views, opinions and suggestions but many have also provided valuable information and analysis, both qualitative and quantitative, on a range of aspects affecting those businesses and individuals that provide life insurance financial advice and the life insurance business itself,” Mr Trowbridge said.

Mr Trowbridge will produce a final report for the LIAWG which will include recommendations for change. The report will be made public and is expected to be handed down at the end of March 2015.

“There is a genuine commitment from the industry to solve some complex issues. The ultimate aims are to ensure quality advice for consumers and improved insurance coverage across the community. These aims will guide assessment of the submissions and formulation of recommendations,” Mr Trowbridge said.

Click here to download the Report.

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Brad Fox

The interim Trowbridge Report released today has identified four key areas that need to be addressed by the life insurance and advice industries in response to ASIC’s Review of Retail Life Insurance and Advice report released on 9 October.

These include:

• the quality of advice
• remuneration and other adviser incentives
• insurer practices and product offerings, and
• industry productivity.

John Trowbridge, former member of APRA, is independent chairman of the Life Insurance and Advice Working Group (LIAWG) established by the Association of Financial Advisers (AFA) and the Financial Services Council (FSC) to address the issues raised in the ASIC Report.

His report is the output of discussions with the LIAWG on difficult and complex issues for the life insurance and advice industries covered in the ASIC report.

Brad Fox, CEO of the AFA said: “The interim Trowbridge Report is an important first step in establishing industry and policy solutions for the four areas identified.”

“The issues are complex and the interim report seeks to stimulate deep thinking in each area that can be given consideration through the LIAWG process and thus contribute to Mr Trowbridge’s final report,” Mr Fox said.

Sally Loane, CEO of the FSC said: “The process is working well and we are looking forward to the next stage.”

“It is important that consumer trust and confidence in financial advice and life insurance products is strengthened to ensure Australians are protected by sufficient life insurance cover,” Ms Loane said.

Mr Trowbridge will be accepting submissions on the areas identified in his interim report until 30 January 2015. The final report, which will include recommendations, will be handed down at the end of March 2015.

The LIAWG will consult with a broad range of industry stakeholders, regulators and Parliament on its recommendations.

The LIAWG Interim Report is available here.

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