The independent position taken by John Trowbridge has been endorsed by key figures involved with the working group who have stated his role was not to satisfy particular stakeholders but to address government and consumer concerns around life insurance advice.
NAB Wealth Group Executive, Andrew Hagger, said while the life insurance industry was ‘equally unhappy’ with the report produced by Trowbridge he was appointed by the Life Insurance and Advice Working Group to provide a non-biased view across the entire sector.
“We did appoint an independent chair for a good reason and that was to get thoroughness and to have a level of independence going across all the submissions and he has made his report,” Hagger said.
“There are some elements that various businesses like and other elements they don’t like and I can see that.”
“As an industry we owe it to our customers to consider the recommendations and look at appropriate reform.”
Hagger, who was on the Life Insurance and Advice Working Group, made the comments at an American Chamber of Commerce lunch in Sydney on Wednesday and echoed similar sentiments by Financial Services Council (FSC) chief executive, Sally Loane, and Association of Financial Advisers (AFA) chief executive, Brad Fox.
Loane, speaking at the Money Management Thought Leadership breakfast on the Trowbridge report on Tuesday said the appointment of John Trowbridge to chair the LIAWG formed by the FSC and AFA was always “understood to be independent initiative to bring the life insurance and advice sector together to change culture”.
“This was a ground breaking approach that has not been tried before and to date it has not worked. It will require a lot of good will to make it work,” Loane said.
Fox, speaking at the same event, said the AFA entered into the LIAWG for “very authentic reasons to confront the problem and not leave it to others to solve”.
“The terms of reference called for a unified response and we have not got it yet, but do remain committed to getting it because the will of the AFA and FSC to get a solution is still strong,” Fox said.
The statements echo those of the interim Trowbridge report in which Loane and Fox state in the foreword that “both associations have been meticulous in their efforts to maintain the independence of the Chairman and his work”.
This was confirmed in the final report with Trowbridge stating “both parties pledged at the outset that my role as chairman of the Working Group was to act independently and not as an advocate for the interests of the AFA or FSC.”
He stated all members of the LIAWG “have all contributed to protecting my independence and the integrity of my work throughout this process. Accordingly, the recommendations in this report are mine and mine alone”.
“It will be a matter for each of the AFA and the FSC and their respective members to decide how they wish to respond to the recommendations. The issuing of this report does not imply its endorsement, in whole or in part, by the AFA or the FSC or anyone else associated with the project.”
