The LICG has urged advisers, in an email, to write to Coalition and independent MPs and ask that the LIF reforms be paused until a wider life insurance inquiry is completed.
The LICG sent conveyed a similar message in an AIOFP letter last month, saying the new inquiry into the life insurance industry – to be conducted by the Parliamentary Joint Committee on Corporations and Financial Services – has the potential to “shed a different light” on the LIF debate.
The LICG said 500 letters have already been sent from its members.
“It is extremely important that we keep up the great work in stopping the proposed LIF reforms in its current form due to the detrimental impact on consumers, small business and the taxpayer,” its email said.
“The LICG has done the heavy lifting to publicly show the unacceptable flaws in the LIF legislation and now it is your turn to help right the many wrongs in the LIF Legislation.”
Last week, the AFA announced the results of its extraordinary general meeting EGM, which was held for members to vote on whether the association should withdraw its support for the LIF reforms.
Out of 842 votes, 620 (74 per cent) were against the association withdrawing its support for LIF, while 222 (26 per cent) were in favour. The EGM was initiated by the LICG, which wanted the AFA to start over in the LIF reform process.
In the future when underinsurance worsens and more customers are forced to go direct and have their claims denied at least members of the LICG can say they did the right thing.
The leadership of the AFA, FPA and FSC will no doubt have their excuses ready but they will be directly to blame for this.
Phil Smith would you please be so kind as to tell us all what percentage of your income is represented by the sale of Risk Insurance?
Well said, Phil. And can we stop using TLAs and FLAs in print, please? What is an LICG when it’s at home?
I have already written to my local member and the Asst Treasurer advocating for LIF to be implemented so I can get on with my life [insurance business] with a degree of certainty. I stated that LICG did NOT speak for me and I believed the vast majority of professional advisers did not support LICG. The proposed LIF claw back and eventual 60% maximum commission is not ideal, but if the agitators keep going the way they are it will only result in a potential worse case scenario of one future commission choice – i.e. ‘level’ [I don’t see all commissions being banned]. And that I do NOT want to ever see.