Association sets out to topple risk reforms
An advice association has launched a campaign designed to force the federal government to re-visit the Life Insurance Framework, which the association believes will lead to poor service for customers and prompt thousands of advisers to leave the industry.
The campaign, dubbed 'Battle of Fairness', was launched last week by the Association of Independently Owned Financial Professionals, with the association's executive director, Peter Johnston, urging advisers to make contact with government officials to put forward their views on the life insurance industry reforms.
"Now is an opportune time to commence an 'email bombardment' of your local sitting Coalition member pointing out that these proposed changes are not in the best interests of consumers, the nation's underinsurance dilemma and small business," Mr Johnston wrote in a letter association members.
"We will supply you with the letter and email address to commence what we have colloquially termed the 'Battle of fairness' and encourage you and all your staff to get involved."
Mr Johnston told members that the changes would not be legislated in the short term and defended his association's militant response to the proposed reforms.
"Some members have asked why we are taking such an aggressive position with this issue, I suspect these members operate purely on a fee for service basis. This is of course understandable from their perspective, but for the far majority of advisers who operate on a different business model our campaign is critically important," he wrote.
"From a political lobbying position, we are the only Association left with the political capital and the will to fight the big end of town."
The other 'forgotten' potential casualties of the proposed changes are consumers, who either will not get advice or will be sold flawed online or telemarketing policies that may not deliver what is needed due to underwriting deficiencies, Mr Johnston said.
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