Only four life insurance industry stakeholders revealed they have lodged a submission with the Life Insurance Advice Working Group, out of the more than 100 that are said to have participated.
Risk-focused financial planning practice Bombora Advice and insurance company Zurich told Professional Planner they have issued submissions. Neither has yet revealed the substance of these, though Bombora says competency standards, the cost of advice, best interest responsibilities and the ‘UK experience’ are addressed.
NAB and insurance company AIA have also confirmed they have made submissions, with no further details provided.
A FSC spokesperson says a broad mix of insurance sector stakeholders have participated. No further details have yet been made available about who the respondents are or what types of information or opinions have been outlined.
Previously, John Trowbridge, chair of the working group, emphasised that respondents were free to make submissions public if they wished. However, neither BT Financial Group, AMP, Commonwealth Bank, ANZ or TAL have confirmed their participation or provided any details after being approached by Professional Planner.
Pressed for further details, Trowbridge says “a bit of patience would go a long way…we’ll have something [to say] in the next couple of weeks”.
The working group was announced on 9 October 2014, in direct response to the damning report into life insurance advice conducted by the Australian Securities and Investment Commission. It is a joint initiative of the Association of Financial Advisers and the FSC, with the Financial Planning Association declined to be involved.
At the time, John Brogden, then CEO of the FSC, said: “Consumer trust and confidence in financial advice and products is essential to ensure Australians have sufficient life insurance cover.”
The regulator’s assessment found nearly 40 per cent of financial advisers it surveyed failed to comply with the law when selling life insurance products. ASIC chairman Peter Kell stopped short of making recommendations, leaving it to the industry to make a self-regulatory response. Trowbridge’s life insurance advice review is eagerly awaited by both the industry watchdog and the Financial System Inquiry (FSI), which David Murray referenced in the FSI report.
The final report from the Life Insurance and Advice Working Group is expected to be announced by the end of March.
