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Lets remind ourselves of the history:
1. ASIC need funding, review 200 files of targeted advisers with higher lapse rates. Create fictitious report 413.
2. FSC jump on this and see the dollar profit by reducing advisers commission. Don't defend advisers with correct market lapse data because if they can get rid of advisers they can sell more junk direct insurance.
3. After the LIF passed ASIC request market lapse data, FSC members provide this. ASIC admit they got it wrong on churn.
4. FSC members start hitting existing customers with huge increases in premiums stating this is because of high claims.
5. Royal Commission happens. FSC member plans for direct junk insurance falls off a cliff.
6. Banks start exiting Risk Insurance. Less competition.
7. FSC members continue to increase existing customers premiums but realise they now need advisers again. Start reducing premiums for new business only for the very same products making a loss. Try to encourage churn with advisers, a problem that wasn't there before the LIF.
8. This doesn't work, new business rates fall off a cliff. FSC members start seeing higher lapses, big reductions in profit.
Next step FSC members start to lobby for sensible commission rates.
Take a bow FSC your scam LIF has been a disaster for customers, advisers and now you.