Today the Government has given its support to a range of measures aimed at improving customer outcomes and industry practices in the Australian life insurance market.
Last year, in response to the ASIC Review of Retail Life Insurance Advice report, John Trowbridge reported on a series of options that would deal to issues highlighted by the regulator, in particular, remuneration models that would benefit from reform.
Today’s package announcement includes a timetable to remove high upfront commissions in favour of alternative remuneration caps, as well as strengthening the ‘claw back’ provisions for the benefit of customers. Importantly, the Government has acknowledged a review of the effectiveness of these measures before the end of 2018 is an essential element of the proposals.
NAB Wealth Group Executive and CEO of MLC Andrew Hagger said: “NAB remains committed to the spirit and objectives of reforms in the life insurance market for the benefit of customers.
“This package represents a positive step for the industry subject to strong and effective implementation, with agreement for consideration of further reforms at a later period. The Government’s formal response to the Financial System Inquiry recommendations will also be important.
“This has been a complex process which has benefited from the guidance and leadership of Assistant Treasurer Josh Frydenberg.”