During a speech at the Financial Services annual conference on the Gold Coast last week, Mr Frydenberg said he is “very conscious of the challenges” the Life Insurance Framework presents advisers.
He added these challenges were made clear during “many discussions” he had held with advisers since being appointed assistant treasurer.
Looking to the insurers in attendance, Mr Frydenberg said if there is a message he could provide them, it was that advisers are “looking to you to help them transition and navigate these significant reforms”.
“Making sure all parts of the industry thrive as a result of these reforms should be seen as a shared goal and given the level of underinsurance in Australia,” Mr Frydenberg said.
“Australians need the industry to come together to improve the quality of advice and to ensure it remains accessible to those that need it most.”
Mr Frydenberg also acknowledged with all the compromises made during debates around the reforms, “neither side got everything they wanted”.
“But by coming to the table, each side was able to obtain a better outcome for their members than they would have in isolation,” he said.
“Of course, implementing the proposals will require ongoing cooperation.
“Industry, along with the government, continues to flesh out the detail of this package and while there is considerable detail to be finalised, the government will not lose sight of the end objective – better outcomes for consumers.”
lol do people actually realise more commissions will be paid to the advisers over the life of a policy under the proposed Trowbridge changes? Insurers do not want to help advisers? tell me how please
If insurers are interested in improving the insurance industry for “general Australian’s” then assistance will be provided. If they are seeking to maximise short term profitability and alter the industry dynamics then only lip service will be provided. At present there has been some motherhood statements saying that everyone needs to work together but nothing specific in how insurers will assist advisers. Given this at present I will remain in the cynic camp.
Not going to happen Josh – the insurers got everything they asked Trowbridge for. They’re hardly likely to want to help advisers (or consumers for that matter) now – it might affect the bottom line.
The Minister forgets that what he is proposing as a result of these one sided discussions is essentially a close down of the Life Insurance Industry and he now realises this. This whole deal is a career wrecker for Frydenberg who must be now starting to wonder why he got such bad advice. His proposal will strip $2bn from Commonwealth revenues and $1bn from state stamp duties. It will be the State Treasurers at about the time of the next election who will close things down and put the Ministers name on the placard telling the electorate that he is to blame and it will be true.
This is one Minister who will have a very short and unsuccessful career if he persists with this nonsense.
Better outcomes for the consumer would be to sort out churning not penalise those doing the right thing! Insurance companies are part of the problem, so can’t see them being part of the solution! Can’t live with them – can’t die without them!