The CEO of the Financial Services Council, Sally Loane, has issued a statement suggesting its support for reforms to life insurance advice, based on the review it commissioned by John Trowbridge during 2014/15 with reforms aimed at removing conflicts from the industry.
Calling for ‘swift passage’ during the legislative sitting week commencing 13 March, the FSC asserts it will introduce a Code of Practice between life insurers and consumers to commence from July 2016.
Under the proposals new advisers will be required to complete a university degree, an exam, a professional year and be subject to a code of ethics and undertake continuing professional development to strengthen the advice profession.
The FSC also stated it recognised the increasing number of claims for mental health related conditions referring to its own Mental Health Standard requiring FSC members to provide training for all front line staff to ensure they have a suitable understanding about mental health conditions to support them in their work in underwriting and claims processes.
Sally Loane stated that while the life insurance industry is undergoing considerable reform and scrutiny, its important to remember the important role it continues to play in helping to support Australian lives. Ms Loane stated that over the last 8 years, $27 billion had been paid out in claims.
