In a submission to the parliamentary inquiry into life insurance, the Japanese-owned life insurer said focus must be given to reducing the cost of compliance, improving life insurance SOAs, and taking different insurance specialisations into account when applying technical standards.
“We know many financial advisers are undergoing a challenging period of transition as they adjust to the new Life Insurance Framework and professional standards being developed by the Financial Adviser Standards and Ethics Authority,” said MLC Life chief customer officer Melissa Heyhoe.
“While we support both of these developments, we’re also concerned the existing regulatory requirements lead to risks of increased costs to consumers or force some advisers to exit the industry.”
According to the company’s submission, reducing the cost of compliance would benefit end clients by improving access to advice and improving the overall client experience, and that reducing the need to ‘interrogate’ a client’s full circumstances as part of the SOA process would allow advisers to focus on their needs instead.
Ms Heyhoe cautioned that reforms are needed to ensure life insurance remains a viable business prospect for advisers.
“Advisers are telling us that unless something changes, life insurance may eventually become unviable to advise on due to time and cost burdens,” she said.
“That’s why it’s crucial we take action now to ensure an affordable and accessible financial advice system, and boost the sustainability of the industry.”
MLC pre Japanese ownership =
Must Lower Commission (for advisers)
MLC post Japanese ownership =
Maybe LIF Crap (for advisers)
to little too late I’m afraid
Where were the FSC members 3 years ago when they were protecting their back yards at the expense of advisers. A bit late now you may loose a substantial part of your distribution system.
Too little too late Melissa, however hopefully your submission will be included in the Royal Commission and hopefully from that we will see a Little “Common Sense” prevail. Pigs may also fly backwards…
Come on folks. Your sister IFA ran this before Xmas. Drew a lot of nasty responses then.
The subject is spot on, but news must be scarce. At least add the previous comments if you must regurgitate the item
correct me if I’ wrong MLC, but the scuttlebut is that you were one of the FSC members pushing for a Level commission on everything for advisers at the Insurance roundtable discussions when this was being worked out?
Perhaps MLC should have thought about this when it backed the reduction of maximum year 1 commissions from 110-120% down to 60%. One day they might wake up and find that there aren’t many risk advisers left.
Says the same company that sat in a room with the other FSC cartel members and completely made it affordable to provide risk advice to customers with the LIF just to increase profits. Are they only just realising that new business is about to plummet over the next few years?