The Life Insurance Customer Group (LICG) is concerned about the recent policy position in the FSC’s statement of policy priorities release. As published in Money Management on 20 May 2016 “The Financial Services Council (FSC) has declared its support for a move to level commissions and fee for service arrangements if the Life Insurance Framework (LIF) fails to meet its objectives.”
The LICG was formed last year to provide life insurance advisers who represent the customer & small business community a voice in the LIF debate. Currently the LICG has more than 2,300 signatories to its online petition that strongly disagrees with LIF in its current form. The LIF is a complex issue that has implications for many stakeholders, foremost the consumer.
LICG is adamant that it is consumers who under the FSC supported proposals will be worse off.
It is critical for all stakeholders to suspend self-interest to ensure that any changes to the industry are measured against positive outcomes for consumers and helps bridge the underinsurance gap that comes at a substantial cost to Government & the taxpayer said LICG’s spokesperson.
“The LICG is urging the FSC to adopt a position that will place the interests of the consumer above self-interest. The LICG has repeatedly called on the FSC for evidence to back up claims that consumers will benefit from the proposals. To date the FSC has not responded with a reasoned reply”.
The LICG also reports it has received widespread concerns that the FSC and big banks are exerting unreasonable influence in their efforts to sway Government and key stakeholders in the LIF debate.
The LICG believe it is imperative the consumer and small business owner’s voice be heard in this debate. More importantly, Australian consumers, who benefit from a quality and thriving life insurance sector, deserve an open and comprehensive debate on this critical issue.
The FSC’s proposals will result in alarming competitive advantage being gifted to the big banks and FSC members.
The LICG calls on the FSC to put the consumer first.