Positioning the formation of the task force within the context of being two years out from ASIC’s review of the Life Insurance Framework reforms, 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 that the ultimate objective is to arrive at a life insurance industry that delivers the best possible outcomes for consumers.
According to a combined statement, the task force will comprise:
- Two senior representatives of the AFA
- Two senior representatives of the FPA
- Four advisers – two from each association
The statement adds that 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.
Kewin said 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. He also stressed the importance of having a united and consistent message from the advice community about the future of life insurance, that can be shared with Government and the regulators.
From the FPA’s perspective, its CEO, Dante De Gori, 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.”
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.