Budget must address underinsurance – AFA
Richard Klipin
The 2007 Federal Budget should address the personal savings and life underinsurance crises in Australia, according to the Association of Financial Advisers (AFA).
Chief executive Richard Klipin called on the Government to follow up on its super initiative in last year’s Budget by addressing these “twin issues of concern to advisers across Australia”.
“The AFA endorses the decisions in the 2006 Federal Budget to ‘simplify’ superannuation, and now asks the Government to address these key areas within the accumulation stage.”
Klipin said the current “parlous finances of many Australian families are a cause for concern among our members”.
“They are helping clients build their financial dreams while working and in retirement, and they know the pressures on mainstream Australia.”
He said the “personal savings drought in Australia was at risk of leaving many families vulnerable when circumstances change”.
“In addition, there is a well known chronic underinsurance of Australian families against the loss or permanent injury of the key breadwinners and their partners.”
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
