Every dealer group within vertically integrated models should be required to have every life insurer on its approved product list, argues life insurance provider ClearView.
In the wake of the recently proposed life insurance industry framework, ClearView managing director Simon Swanson told ifa he is "disappointed" that the issue of widening APLs has not been immediately addressed, especially for dealer groups inside vertically integrated companies.
"I [don't] understand why you wouldn't deal with the obvious conflict of interest inside vertically integrated companies considering most of the advice issues have come from [within these businesses]," Mr Swanson said.
"I hope that the government will require all vertically integrated companies to have all life insurers on their dealer group APLs.
"That would remove the obvious conflict of interest and ensure that financial advisers are able to provide the best life insurance for their clients' needs," Mr Swanson said.
Also speaking to ifa, Zurich general manager of retail life and investments Philip Kewin said he would support any position to widen APLs as it will be "healthy for competition".
"There is a strong argument [to have as] many insurers [on an APL] as you can, because that opens up the architecture completely [and this will] mean everyone can compete on a level playing field," Mr Kewin said.
"I know a lot of advisers – and rightly so – are frustrated that the front end has all been about their commission and not a lot about what insurers have to do and what dealer groups have to do.
"But now we have a framework we can start to look at those sorts of things," he said.
The recently announced framework which was agreed upon by the AFA, FPA and FSC outlines that the government is currently considering measurers to widen APLs by 1 July 2016.
The Trowbridge Report recommended all dealer groups have a minimum of half of the 13 life insurance providers available on their APLs.
The government is finally delivering on its budget promise to remove the $450 per month superannuation guarantee threshold. ...
ASIC has revealed a major focus over the next 12 months will be to identify and pursue “opportunities for smarter regulation”. ...
Fidelity International has committed to halving emissions from its investment portfolio by 2030 and has set deadlines for the phase out of thermal c...