AIA Australia today welcomed the announcement released today by The Honourable Josh Frydenberg outlining an industry-wide reform to the retail life insurance industry.
AIA Australia Chief Executive Officer Damien Mu said today’s announcement is an important step in providing clarity on an industry-led response following the ASIC report released last year and John Trowbridge’s report and recommendations.
“Since the release of the independent final report prepared by John Trowbridge and the ASIC investigation, the industry has been challenged to come together and address the many complex issues raised. What was made clear from the start was that industry had one last chance to find a way to make acceptable change. Reaching a consensus was critical to achieve an outcome.
“At the heart of these discussions has been the need to reach agreement on how we can ensure a sustainable advice industry which supports access to quality independent advice and adequate life cover for all Australians.
“These broad structural changes will have a significant impact on our industry and in particular advisers, so support from life insurers for advice partners will be critical during this time of transition. We will need to work more closely together on issues like product design, structure, process and systems and believe that a partnership approach, now more than ever, will be paramount to achieve a successful and sustainable outcome.
“For consumers, we believe their best interests are served by having a robust market that supports choice, access to quality advice, independence, innovation, competition and value. We believe the reforms support these interests.
Mr Mu also stated that AIA Australia is supportive of measures such as choice on Approved Product Lists (APLs), the introduction of a code of conduct aimed at setting standards of best practice for insurers, licensees and advisers and improved reporting for the industry.
“We look forward to discussing these changes further with advisers, industry and government over the coming weeks and months with a view to implementation,” Mr Mu said.
Source: AIA
