Treasury will now assume responsibility of the Life Insurance Framework (LIF) review, preventing overlap with the quality of advice review.
Speaking at the Financial Services Council (FSC) Life Insurance Summit, Senator Jane Hume, said: “One of the things we’ve been trying to do, and you will see this around the announcement of the single disciplinary body, is to make sure we have alignment in the work we’re doing.
“A lot of good work has been done, particularly by the FSC on financial advice and we would like to see this feed into the quality of advice review.
“But it seems silly to have one review on life insurance at ASIC and another review about the quality of advice in Treasury when there’s going to be so much overlap.
Hume noted the review would consider the "full breadth of issues impacting on both quality and affordability of all forms of financial advice".
Hume said ASIC had already started its data collection but that data would now come back to Treasury for analysis.
"As we undertake the quality of advice review, important issues like the degree of underinsurance and maintaining access to affordable, quality advice will be at the forefront of our minds," she said,
"These elements will enable us to achieve the objective of a thriving life insurance sector that provides access to quality insurance products tailored to meet the needs of Australians and their loved ones at a time when they need it most."