The life insurance sector can reach a resolution around remuneration as it has the skills and experience but also needs to have the intent according to Association of Financial Advisers (AFA) chief executive Brad Fox
Speaking at the Money Management Thought Leadership breakfast on the Trowbridge Report in Sydney this morning Fox said every suggestion for change needs be to put up for discussion along with the reasons for that change.
“To resolve the issues raised by the Report we to have transparency and complete honesty. If we look at who wants what in terms of the recommendations then they need to step up and put reasons on the table where we can debate them, Fox said.
“If the issues are about sustainability for an insurer, put the evidence on the table but if not we can get rid of that as a challenge. We need clearly to know what it is that we are trying to achieve.”
Fox said the industry was equipped to reach a compromise without government interference and should not even be discussing that as an option to solving the issues raised by the Trowbridge Report.
“The heads of 13 insurers have the talent to resolve this problem. This was an industry issue not a government one and talk of the heavy hand of government is out of the conversation
“This is ours to solve and people in this room have experience and quality, the only question is if they have the right intent. We need a sustainable insurance industry for advisers, practices, licensees and insurers and if the intent is right we will solve it in time frame minister wants.”
Fox said that despite the differing responses to the Trowbridge Report both the AFA and the Financial Services Council (FSC) were still committed to a single solution even if the working group set up by the two was no longer operational.
“The AFA went into working group for very authentic reasons and there was a clear problem identified. We had made comments on whether ASIC report last year was too targeted but even if its results were there was still a problem,” Fox said.
“The terms of reference called for a unified response and we have not got it yet but we do remain committed to get it because the will of the AFA and FSC to get a solution is still strong.”
