TAL supports the reform package and the industry’s recommendations as an important step forward for the life insurance industry. TAL participated actively in the discussions to address the structural issues that have negatively impacted the industry and, importantly, that undermined consumer confidence in the sector as a result.
The industry’s proposal is a balanced yet significant package of reforms that are designed to provide a way forward for life insurers and advisers to work together to deliver a sustainable and high-quality life insurance industry for consumers.
Consumers must receive outcomes of the highest quality when it comes to important financial decisions around life insurance products and financial advice. They must be confident the life insurance products and services they receive are delivered without any perceived or real conflict. The reforms are designed to help us collectively evolve our industry to ensure more Australians are covered by life insurance and seeking financial advice.
We appreciate that the recommendations involve substantial changes for many financial advice businesses and we will support them through this transition. Australians need more and better access to trusted financial advice and we will continue to invest strongly in this market to ensure this happens.
Brett Clark is the chief executive officer of TAL
Sorry there’s no balance or collaboration in these reforms. As usual, the only ones making any change to their business are advisers – increasing their admin burden, decreasing their income, and increasing their financial risk via the 3 year clawback.
Balance and collaboration would involve the insurers also making changes. Code of conduct that they have 12 months to get drafted? The only change the insurers will have to cope with is increased profit margins as their distribution costs will drop.
What a total joke.
BALANCED? for whom? three years liability does not make for a good business model, I am out, not worth the risk. Thanks TAL & your manipulative mates
Brett, I wonder how you will feel in March next year when TAL has its quarterly managers meeting to discuss why each state has not made their quarterly sales target. The so called reforms are going to close small IFA’s down, and if the larger writers simply stop writing new business as it’s no longer profitable for us to write new
business, how are you going to explain that to your shareholders?
Bring on the Blood Bath.
Grab a calculator, do some maths and realize the insurers will actually pay out $550,000,000 extra commission over a 10 year period. and in 10 years time our businesses will also be valued at roughly $1.5b more due to these changes. But you’re right, we have it hard.
Dear Brett you have to be kidding the Government has no right to dictate our incomes, I wrote 1.21 Mill last year to date with TAL now it will be 0
Such concern by the company that pushed for this reduced commission and the clawback structure and we will see what happens when the new business dries up as no adviser will want to work for 3 years before they know if they have even covered there costs, I think advisers will be considering there futures carefully by years end.
Barrie, this has never been about a better outcome for clients, therefore none of them talk of reducing premiums.
This is all about increasing profits at the expense of advisers, nothing more.
A question I would like to ask following the announcement is, “With the advisers bearing the brunt of the commission reduction what are the life companies going to do with the extra funds not having to be paid out to adviser?. Will those funds just be added to revenue? There is some talk of when the new arrangements occur perhaps the Life Companies will reduce premiums which will again reduce remuneration as paid at a % or premium. Some clarification would be appreciated
Barrie