• subs-bellGet the latest news! Subscribe to the ifa bulletin

Insurers to blame for remuneration woes

Suncorp Life’s CEO has said product manufacturers need to accept responsibility for creating the life insurance advice remuneration status quo and need to play a role in fixing it.

Speaking at the FSC Life Insurance Conference in Sydney on Thursday, Geoff Summerhayes, chief executive of Suncorp’s life business, said product providers need to “face in” to the report’s conclusions.

“There are absolutely differences of opinion, but the manufacturers have created this situation in terms of our remuneration structures and I think the manufacturers absolutely accept that it is also our position to solve that,” Mr Summerhayes said.

“That is having consequences right down the value chain, but the payments are made out of manufacturers and it is up to the manufacturers to face into that and [remove] that misalignment."

ANZ Global Wealth insurance MD Alexis George said more broadly that the industry needs to “be responsible and move forward” and “embrace the challenge”.

The comments follow those of report author John Trowbridge at a press conference last week in which the LIAWG chairman said he feels for advisers as victims of a problematic system "not of their own making". 

“They have made the best of it as it is and they now have to make the best of a different environment in the future and I want to see the licensees and the insurers take a lead in dealing with these issues,” Mr Trowbridge said.