Forum for advice clients Adviser Ratings has welcomed the Trowbridge Report, saying life insurance reforms to cut commission was long-overdue.
Adviser Ratings director, Christopher Zinn, said that while the Future of Financial Advice left out life insurance, the industry itself can undertake reforms.
“Consumers have known for years that life insurance, though an essential financial service was seemingly run for the benefit of the industry and advisers through cosy commissions,” he said.
“Capping upfront commissions in a way which ensures we can get transparent access to the kind of policies and advice, satisfying our best interests as consumers, is surely paramount.”
The Trowbridge report shows how increasing premiums, low coverage, complexity and hurdles in comparing life insurance products inside and outside of superannuation can be addressed, Zinn said.
“Adviser Ratings believes it is ironic that the sales-driven culture from the early days of life insurance, helped the conflicted remuneration business models evolve, damaging the wider financial advice sector,” Zinn said.
