The Association of Financial Advisers (AFA) and the Financial Planning Association of Australia (FPA) have teamed up to form a Life Insurance Task Force, two years out from ASIC’s review of the Life Insurance Framework (LIF).
AFA CEO, Philip Kewin, said the task force has been set up in order to have a combined association approach to the future of life insurance and the ultimate objective is to arrive at a life insurance industry that delivers the best possible outcomes for consumers.
“We believe it is very important to have a united and consistent message from the advice community about the future of life insurance, that we can share with Government and the regulators,” he said. “This will also allow us to work collaboratively as a community with Government, towards the shared goal of great outcomes for consumers.”
The task force will be made up of two senior representatives of the AFA, two senior representatives of the FPA and four advisers – two from each association.
A key focus of the task force will be helping to improve the general understanding of the role financial advice plays in improving insurance outcomes for consumers and the importance of offering them choice in how they pay for that advice. “The aim is to create greater understanding of financial advice, the role of advisers and how life insurance commissions offer consumers an affordable way to access life insurance advice,” Mr Kewin said.
The task force will also report back to advisers with a common view on what will be required of them after ASIC’s 2021 review of the industry.
FPA CEO Dante De Gori CFP said, “The FPA and AFA collectively represent many, many thousands of financial planning professionals, who in turn serve millions of Australians who care about life insurance. So, as a united taskforce we can make an impact for well-considered, positive change much more effectively.”