Comments by John Trowbridge suggest that advisers are in the way of the Life Insurance Framework (LIF) reforms, according to the Life Insurance Customer Group (LICG).
In a speech at the FSC Life Conference in March, Mr Trowbridge stated that intermediaries are creating a separation or distance between insurers and customers, the LICG said in a statement.
Mr Trowbridge went on to explain that the future of life insurance is direct – as it has become with general insurance – the group added.
“When you look at the rationale in their submission to the Trowbridge process, it would appear that the FSC shares those views,” the statement said.
“It would appear that the FSC doesn’t want unaligned advisers reviewing insurance offerings across the market.
“If you don’t want consumers to know the facts about all the insurance alternatives, it is easy to see why some advisers may be perceived as ‘getting in the way’.”
The LICG also said that it asks for transparency and integrity in the LIF debate, requesting for comments from both the FSC and from Treasury.
“Given that the Minister [Assistant Treasurer Kelly O’Dwyer] has based all her media and parliamentary reporting relating to the LIF ‘reforms’ on the integrity of an ‘industry agreement’, and the independent Trowbridge process, we ask for comment from Treasury also,” the statement said.
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