Clawback the starting point on new churn framework
The Financial Services Council (FSC) will make the claw-back position it achieved on life/risk churn the starting point for its renewed approach.
FSC chief executive John Brogden has confirmed that the position reached on the claw-back framework achieved before the issue was shelved earlier this year would be the starting point for the renewed approach to reach a framework for self-regulation.
He said this was the position reached by the FSC's Life Insurance Board Committee, which had taken the view that negotiations around the claw-back framework had been close to achieving a satisfactory outcome and should therefore represent the starting point for the renewed effort.
Brogden said the FSC would be looking to hold broad-ranging discussions with a view to finding an agreed position over the next three to six months, after which the issue would be taken off to the Australian Competition and Consumer Commission (ACCC).
However, he said that while churn still remained an issue, greater importance was being placed on sustainability and consumer outcomes, including putting downward pressure on pricing around life/risk.
"We want to make it as affordable as possible," he said.
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