FSC urges ‘swift passage’ of LIF through Parliament

With the legislation to reform the life insurance sector receiving bipartisan support, FSC chief executive Sally Loane is now urging that the bill be passed quickly during the next sitting of Parliament.

In a statement, Ms Loane said the FSC supports the bill to reform life insurance advice, adding that its provisions are a "step in the right director" in removing "conflicts" from the industry.

"The relevant legislation has bipartisan support and is currently before the Parliament. We urge swift passage in the [next] sitting week," she said.

As part of the legislation, the FSC will introduce a code of practice for life insurers to adhere to, Ms Loane added.

"The Life Insurance Code of Practice will introduce new binding standards for life insurance companies and will be implemented in July 2016," she said.

"The Code, which is still under development, has involved working closely with regulators, consumer advocates and the industry to set standards for selling insurance, claims handling and assisting vulnerable customers."

Ms Loane added that the life insurance reforms are also being supported by separate reforms to increase adviser education and professional standards.

"This will serve to strengthen advisers and the advice profession," she said.

"Under the proposals, new advisers will be required to complete a university degree, an exam, a professional year and be subject to a code of ethics and undertake continuing professional development."

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+8 #7 Craig Yates 2016-03-07 14:30
When you work at Coca-Cola Amatil for 8 years you get used to pumping out large volumes of stuff that contain a massive amount of fizz with very little substance.
Well done again Sally for your public and media relations spin skills.
We all know very well when looking back at the FSC's submissions to Trowbridge and subsequent media releases since, that the FSC is relentless in their pursuit to have all risk insurance advisers on a fee for service basis only in an attempt to greatly reduce their numbers and to significantly build the direct insurance businesses of their members.
This will have a devastating impact on the ability of consumers to engage with a knowledgeable and experienced adviser at a reasonable and affordable cost base to assist them in deciphering the plethora of technical information that surrounds the process regarding quality risk insurance advice and strategy.
It is entirely disheartening and disappointing that many of the very same insurance companies that have been supported by high quality and ethical adviser's insurance business over many years have no loyalty to those advisers they know to be so and are simply tackling this impost by offering new and increased business efficiency programs to attempt to try and offset the financial loss suffered by advisers.
The public and consumers need the protection and knowledge a quality adviser can provide....with out it, they are on their own and vulnerable.
This proposed legislation masquerading as a step forward in consumer protection and benefits is a smokescreen for corporate greed, manipulation and market share.
+12 #6 Rob Coyte 2016-03-07 11:32
Sally Loane has done a wonderful job on behalf of her masters the banks and insurance companies. With the removal of advisers from the process insurance companies will be able to deal directly with an uninformed public making it easier for them to gouge profits.
+10 #5 Michael Butler 2016-03-07 11:31
The FSC are the most conflicted of the participants in this discussion as they represent the Insurers and the Institutions not the actual advisers. The LIF will not remove conflicts from the Industry and will simply increase the current high levels of under-insurance and drive advisers from the industry. The Policies available will be sub-standard "direct" policies that are underwritten at claim time not at application and we have seen with the performance of Comminsure where the loyalties of the Insurers and Institutions lie and its not the clients. Requiring long standing advisers to undertake a University degree now to simply continue what they are doing now has no basis in consumer protection.
+12 #4 Paul F 2016-03-07 11:07
Is there any surprise the FSC is urging the bills quick passage through the Senate to avoid any real scrutiny of the conflicts that Sally and her cronies are trying to embed in the insurance industry. This bill does nothing to protect consumers or improve accessibility to insurance advice but it will enable record profits for the life companies and that, after all, is what this is all about.
The Senate should think long and hard about the FSC's real agenda before accepting the grubby little cash grab they are proposing.
+12 #3 jeff morris 2016-03-07 10:36
At least the FSC agenda is clear and unambiguous. These so called reforms favour the big life companies. Better get these through before the full implications of the unfolding CommInsure Scandal make it obvious where reform is really needed.
+11 #2 Donald Wayne Brown 2016-03-07 10:19
the FSC Establishment is worried there may be a clink in there armor so they are wanting the bill passed before anyone has time to realize it is a threat to the independent financial planners in Australia and will make the vertically integrated system the new king, god help us.
+9 #1 Adam P 2016-03-07 10:18
FSC wants nothing more than increase Big Bank and Insurance Institution profits, whilst screwing mum and dads insured and also shifting profits away from small business advisers.
The FSC, Big Banks and Insurance companies need to be held accountable for this farcical so called reform.

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