A key life insurance lobby group has hit back at the AFA's claims that advisers are backing the Life Insurance Framework (LIF), saying that a survey of its signatories revealed nearly 90 per cent of AFA members that participated in the survey were dissatisfied with the reforms.
According to a survey of 500 financial advisers conducted by the Life Insurance Customer Group (LICG), almost 90 per cent of AFA members strongly disagreed with LIF reforms and failed to find any consumer benefits from the proposed legislation.
"Over 550 of the total 2,336 LICG signatories are AFA members, a figure which shows significant discontent with the LIF outcome," an LICG statement said.
"These signatories joined LICG to express dissatisfaction with the LIF reforms. The overwhelming number of adviser submissions to the Senate Economics Committee Inquiry into the LIF further highlights substantial adviser dissatisfaction."
Yesterday in ifa, AFA chief executive Brad Fox said that the association had received "resounding support" from its members, while the FPA said that member satisfaction was on the rise.
The LICG was set up last year in an attempt to prevent the LIF from moving forward and is made up of a number of prominent industry identities, including director of dealer group Now Financial Group Mark Dunsford; Bombora Advice head Wayne Handley; Life Insurance Direct chief executive Russell Cain; Empire Risk director and senior adviser Daniel Isenhood; GJO Financial Services CEO Greg Owen; and Lambert Parkhill Financial Group managing director Ron Lambert.
In a meeting held yesterday in Sydney, the group moved to keep working on ways to ensure consumers continue to have choice, ensure all Australians have access to affordable protection, and make sure consumers have adviser support to ensure their claims are paid.
"No identifiable consumer benefit has yet been established by government or industry participants in the LIF reforms. It is this critical issue which lead to the formation of the LICG to ensure that the consumer was actually represented in this debate," an LICG statement said.
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