A Commonwealth Bank spokesperson confirmed to ifa that a number of “small changes” to the life insurance business have been made, citing a “competitive insurance market” as a driving factor.
ifa understands that as many as 40 CBA staff members may be affected by the changes, with some sources speculating that the number is as much as double that, and a number of exits from the group are expected.
Efforts are being made to find positions for some affected staff members within Australia’s largest banking group, though a number of senior distribution staffers are seeking employment outside CBA, according to sources with knowledge of the matter, speaking on condition of anonymity.
The revelation follows an email from CommInsure executive Olivia Sarah-Le Lacheur to the life company’s stakeholders on 16 June, seen by ifa, in which advisers and licensees were assured that upcoming changes will not adversely affect the relationship.
“In response to the changing market conditions and our intentions for the customer and adviser offers, CommInsure is making changes to its retail advice distribution team,” Ms Sarah-Le Lacheur wrote.
“In making this decision, I want to assure you that CommInsure remains committed to you and your advisers.”
Ms Sarah-Le Lacheur stressed that state-based leadership and national account management roles would not be impacted, but that advisers and licensees in NSW and Victoria may “experience a change in which dedicated BDMs service them”.
I feel for the team. Comminsure BDM’s have had the toughest gig in the marketplace for years and this is the thanks they get. Poor buggers.
If nothing else I’m sure they are the best damn sales people out there..
Perhaps Comminsure could charge the BDM’s out on a fee for service basis? This will undoubtedly lead to an increased engagement with advisers and lower the cost of life insurance.
I think that CommInsure “reducing BDM numbers” is an appropriate business response to the effects of the LIF. Since the day the LIF was proposed our Industry was in trouble and even “blind Freedy” can see that the Industry is in “free fall”. The LIF will eventually catch up with those that were responsible for it’s implementation. In other words there will be significant job loses in Life Offices and even some Parliamentarians involved (as we have been told) will struggle to retain their seats in Federal Parliament. All I can say is that it’s a sad day that such all ill conceived reform was allowed to even see the light of day. What were those famous words “To better align the interests of all parties”. With still 6 months before implementation how is it looking now Life Offices?
Didn’t see it that way Roger – great understanding.
Isn’t it pleasing to also read today that in addition to passing legislation that caps advisers incomes; imposes longer policy responsibility periods; demands greater education and compliance paperwork plus approving $900-$1,000 ASIC Funding Levy’s and Tax Practitioner Board fees, that Federal Ministers have agreed to now pay THEMSELVES more money and give themselves a tax cut from next month??!!
Two words . . . DISGUSTING CORRUPTION.
I highly doubt LIF/FOFA will have any influence on those elected to parliament or a change of government. You don’t hear joe-voter (or joanne-voter) walking around the water cooler saying, “gee, I’m concerned my financial planner will lose revenue and those poor CBA BDMs losing their jobs, gee, I’m going to change my vote…!” To whom? LIF/FOFA is not in the top 100 concerns of about 99% of voters.
You need to all get over yourselves if you think it does.
No but the unemployment que increase will!!
So CommInsure refuse to keep up with the times for years and years while their competitors innovate. Then they make a few urgently needed changes to their product as a result of the media highlighting their wretched claims handling strategies and because no-one really trusts them now, they kick their Licensees and BDM’s to the curb. Nice work CommInsure and CBA – quality work!
This is so typical of how the bank protects its own despite IT’s own being the actual cause.
I STILL won’t write my clients business with you!