IFAs well-poised after royal commission: MLC Life

MLC Life Insurance says it is positive about the ability for the independent financial advice sector to be a beneficiary of public trust and good will in the aftermath of the royal commission.

Speaking at the AIOFP 20th anniversary conference in New York, MLC Life Insurer chief operating officer Sean McCormack said the Japanese-backed insurer is “bullish” on the IFA sector.

“The independent market is so beautifully poised to reap rewards from media attention to the royal commission,” Mr McCormack said.

Discussing the need for the financial services industry to restore trust, he offered an equation that IFAs may be advantageously positioned to take advantage of.

“Trust is credibility plus reliability plus intimacy divided by the perception of self interest,” Mr McCormack said.

“They can point to a lack of self-interest arguably more than others in the industry.”

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Mr McCormack also said that MLC Life’s new ownership structure following its acquisition by Nippon Life in 2016 has made it well-poised to also drive trust with customers.

“NAB was a perfectly respectable owner but what has changed is that the conversation always starts with the customer now,” he said. “It takes precedence over the shareholder.”

Addressing the same audience, MLC Life chief investment officer and deputy CFO Shinichi Okamoto said the company will be focused on claims and customer service.

“The heart of our business is claims. we are proud of our ability to keep our promise with the customer,” Mr Okamoto said. “This mindset is passing on to the MLC Life Insurance.”

IFAs well-poised after royal commission: MLC Life
Royal Commission, MLC Life Insurance, Sean McCormack, Nippon Life, Shinichi Okamoto
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