The interim Trowbridge Report released today has identified four key areas that need to be addressed by the life insurance and advice industries in response to ASIC’s Review of Retail Life Insurance and Advice report released on 9 October.
These include:
– the quality of advice
– remuneration and other adviser incentives
– insurer practices and product offerings, and
– industry productivity.
John Trowbridge, former member of APRA, is independent chairman of the Life Insurance and Advice Working Group (LIAWG) established by the Association of Financial Advisers (AFA) and the Financial Services Council (FSC) to address the issues raised in the ASIC Report.
His report is the output of discussions with the LIAWG on difficult and complex issues for the life insurance and advice industries covered in the ASIC report.
Brad Fox, CEO of the AFA said: “The interim Trowbridge Report is an important first step in establishing industry and policy solutions for the four areas identified.”
“The issues are complex and the interim report seeks to stimulate deep thinking in each area that can be given consideration through the LIAWG process and thus contribute to Mr Trowbridge’s final report,” Mr Fox said.
Sally Loane, CEO of the FSC said: “The process is working well and we are looking forward to the next stage.”
“It is important that consumer trust and confidence in financial advice and life insurance products is strengthened to ensure Australians are protected by sufficient life insurance cover,” Ms Loane said.
Mr Trowbridge will be accepting submissions on the areas identified in his interim report until 30 January 2015. The final report, which will include recommendations, will be handed down at the end of March 2015.
The LIAWG will consult with a broad range of industry stakeholders, regulators and Parliament on its recommendations.
Life insurance and advice industry to embrace change: Trowbridge Interim Report
