The federal government’s latest announcement on financial advice reform has renewed calls from the life insurance industry to allow insurers to provide basic, low-cost advice to consumers.
The Council of Australian Life Insurers (CALI) welcomed the government’s latest announcement on reform, saying the changes could improve access to affordable life insurance guidance—but warned that barriers still remain.
“Today we have made meaningful progress. This announcement confirms the government’s commitment to reforming financial advice and improving financial outcomes for all Australians, but there’s still more work to do,” said CALI CEO Christine Cupitt.
Current laws prohibit life insurers from giving personalised advice, even in response to direct questions. CALI argues that adjusting the rules—particularly around the best interests duty and introducing a new class of adviser—would help more Australians get the information they need.
“Australians want advice that is simple, accessible, and affordable. For the millions of Australians who are waiting in line for affordable advice about life insurance, reforms to the best interests duty and introducing the new class of adviser are essential,” Cupitt said.
Research commissioned by CALI found that 46% of Australians want tailored advice to help them determine the right level of life insurance cover and find suitable products.
“CALI has long advocated for more affordable, accessible financial advice by allowing life insurers to provide simple answers to simple questions at no extra cost to them,” Cupitt said.
Regardless, the council said it will continue working with the government to support the remaining reforms under the Better Financial Outcomes program.
