Disability insurance forgotten by inquiries
The disability insurance dilemma has been wrongly excluded from a series of financial services inquiries, placing the onus on industry to work together to resolve the raft of issue facing the space, a conference has heard.
Speaking at a Financial Services Council panel session in Cairns, Minter Ellison partner Richard Batten said while the inquiries, including the Financial System Inquiry, have attacked parts of the problem, the sustainability question has remained unanswered.
"The FSI doesn't address disability," he said.
"We have an opportunity here, with the system really being looked at.. (But) we're going to have to raise the profile," he said, in an industry call to arms.
Part of the solution could involve greater collaboration between health and life insurers, who too often work In silos, Macquarie Life head of underwriting Dr Sally Phillips said.
The panel agreed that the private insurance sector is inadequate in its current form to take on the burden of the National Disability Insurance scheme, with Deloitte's Caroline Bennett stressing affordability, choice and sustainability must all be addressed before the public scheme could be transitioned into private hands.
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.
