Australia’s life insurance industry announces new peak body

The Australian life insurance industry is expected to launch the Council of Australian Life Insurers (CALI) later this year; a collective voice with a focus on meeting the evolving expectations of the community.

A spokesperson for CALI said the life insurance industry had undergone significant change, including policy reform and structural changes via industry consolidation following the Royal Commission.

“Given the changing landscape in both regulation and structure, as an industry, we believe the time is right to form a dedicated peak body to focus solely on matters affecting the life insurance industry and its customers.”

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The insurers noted that the Financial Services Council (FSC) had played a critical role in representing the life insurance industry during a period of significant change in Australian financial services over its time as the representative body, and had been instrumental in the development of key initiatives such as the Life Insurance Code of Practice (LICOP), establishing landmark industry data collection and analysis, and in representing the financial services industry more broadly following the Royal Commission.

The CALI spokesperson noted that the new industry body would be seeking to take over future responsibility of the LICOP as part of the transition arrangements with the FSC. The FSC announced today that it was unveiling 50 additional consumer protections in the LICOP.

CALI expected to continue to have a close working relationship with the FSC on a range of financial service matters to deliver the best life insurance outcomes for all Australians.

FSC chief executive, Blake Briggs, said: “The FSC welcomes the formation of a sector-specific association that will collaborate with the FSC and compliment the FSC’s broader representation and advocacy on behalf of the financial services industry.

“A priority for the FSC is ensuring continuity of consumer protections in the life insurance industry. The FSC and the life insurance industry are committed to the implementation of the new Life Insurance Code of Practice and ongoing independent oversight by the Life Code Compliance Committee.”

In addition to upholding existing industry standards and practices, CALI would initially be focused on:

  • Continuing to lift consumer standards within the industry through professional standards and codes of conduct;
  • Advocating for Australians to have access to appropriate, affordable and sustainable life insurance protection throughout their lives;
  • Informing Australians and key stakeholder groups about the role and value of life insurance; and
  • Seeking opportunities for the industry to further contribute to the community.

“Life insurance plays an essential role in Australia’s community and economy, and it is important that it remains accessible and sustainable for all Australians into the future,” CALI’s spokesperson said.

“Through CALI, we intend to strengthen our engagement and relationships with our stakeholders, including consumers, their representatives, policymakers and regulators, to ensure we deeply understand their views.

“The Council of Australian Life Insurers will be the progressive voice of life insurance in Australia, focusing on what is important to consumers and making continuous improvements to meet those expectations. CALI will also look to foster and strengthen the knowledge and understanding of Australians on the value of life insurance and the importance of the benefits and protections it provides,” the CALI spokesperson said.

CALI was currently being established with recruitment under way for a chief executive and staff.

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Call me sceptical ? But I bet whatever changes and recommendations come out of this new entity will be heavily slanted in the insurance companies favour !

Why cant we have a collective voice too? This is another reason so we dont get railroaded by insurance self interest pty ltd. They seem so proud of the work the fsc did to bring in lif the worse thing that ever happened to the industry, the very thing that is causing rising premiums, less lives insured overall, record lapse rates, and the birth of mickey mouse products. Couldnt run a chook raffle these guys, all those highly paid execs in the insurance companies and they cant even price a product sustainably. Pathetic

Actuaries in the US can still price Whole Of Life products in a profitable and sustainable manner and the mortality rate is 100%.
Australian Life Insurance companies starting losing site of the importance of long term focus to focus on
unsustainable short term products and a focus on sharemarket based success rather than the mutual model whereby the real shareholders are your insurance policy owners who all have a vested interest in the long term success and profits of the company.
The demise of the mutual model within the Australian market was akin to the fast food industry.
When you eat fast food, you get immediate gratification for a short term basis.
It doesn’t last and doesn’t deliver any long term value.
Every fast food provider tries to out play and out price each other for short term gain and a share of the market.
That’s exactly what has happened in the Australian Life Insurance market to the point where the value of what the client has in place is reduced because the pricing has now blown out to unsustainable levels.
The companies forgot about the quality adviser and the real value they can bring to longevity, brand recognition and the culture.
It’s time to seriously refocus on product, distribution and the real benefit of creating a culture of loyalty, respect and long term profitability and sustainability.
This is not about going back to the way it was but it is about taking the key elements of better times and moulding those into a future model that will succeed and endure.

Cartel of

Australian? Not any left soon.

What happened to the AFA? Wasn't that the joint for old lifey's?

It’s the home of Old Lifey’s and IFA’s who knew the FPA were a bunch of turds, and just needed to find a home for TPB registration. To wit, now we are free from the shackles of the TPB I wonder if the requirement to be a member of a body will soon be dropped..

So CALI is advocating for
“ stable commission rates” !!!!!!
They surely cannot be serious!
They need to immediately clarify if they propose to urgently lobby government to increase the commission rates to a minimum of an upfront rate of 90% and a renewal rate of 20% with a 1 year pro- rata responsibility period only.
It is an absolute insult to all those professional, loyal, competent and hard working Risk Advisers that had nothing but neglect and contempt thrown at them during the failed and conflicted LIF process.
These Life Insurers knew who their key relationship advisers were. They knew the so called “ churning “ issues were significantly inflated and knew they could control any examples easily.
They knew the calls from quality advisers were true, reasonable and responsible for all parties concerned.
They knew, but the vast majority chose to ignore the people who had built their business, provided quality and sticky risk business and helped to build their product acceptance and brand.
They have a very, very long way to go to earn the trust, respect and culture they once enjoyed with their loyal advisers.
CALI refer to these advisers as their
“partners”, but quite frankly, the lack of courage and support these insurers showed toward their “partners” during the LIF negotiation period was negligent.
Right now, with the dire state the Life Insurance industry and its advice model is in, CALI needs to stand and fight like they mean it and with the intelligence, courage and grace they should have shown years ago.
The saying that “ If you don’t stand for something, you will fall for anything” is never more true, right here & right now.
Say it like you mean it and fight for what is right and just for all parties concerned.
Good luck.

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