The Council of Australian Life Insurers (CALI) has welcomed the federal government’s successful passage of the first phase of the Delivering Better Financial Outcomes reforms.
The recently passed Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill, according to a news release, will expand Australians’ options for receiving advice on life insurance. It also seeks to support financial advisers across the nation while reducing regulatory burdens.
CALI CEO Christine Cupitt described the bill’s passage as a significant first step towards addressing Australia’s financial advice accessibility crisis.
“People need someone to talk to. Making decisions about your financial future is hard, and you shouldn’t have to do it alone,” said Cupitt. “Expanding Australians’ access to affordable advice helps empower them to make informed decisions so they can live in a healthy, confident and secure way over their lifetime.”
According to independent research commissioned by CALI, over the past three months, more than a quarter of Australians considered seeking financial advice on life insurance but did not act on it. Only 8% of Australians received such advice during the same period. Notably, one-third of those who did receive advice relied on family and friends, highlighting the high cost of professional advice.
“We want to see legislation that allows life insurers to provide simple advice on their own products when customers ask them to,” Cupitt said. “We want to give Australians more choice at no cost to them. We shouldn’t be turning them away when they ring our call centres. Giving simple answers to simple questions is basic customer service.”
CALI expressed optimism about continuing collaboration with the Federal Government on the subsequent phases of financial advice reforms.
This initial legislative move marks a promising development in making financial advice more accessible and affordable for all Australians.
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