Accounting and financial advice firm William Buck has supported the recommendations made by LIAWG independent chairman John Trowbridge, calling them a “step in the right direction”.
Commenting on the recommendations made in the Trowbridge report, William Buck insurance specialist Sam Kitchen said the recommendations will ensure the consumer's and adviser’s interests are more closely aligned.
“The Trowbridge report is a step in the right direction for the insurance industry,” Mr Kitchen said.
“Upfront commissions have been an issue in the insurance industry for a long time as highlighted in both the Trowbridge report and in ASIC Report 413 which was issued last year.”
Mr Kitchen said that if flat fees are to be introduced into the life insurance industry there will need to be a review of how the claims process is carried out.
“At present, clients can find themselves paying thousands of dollars to lawyers to process their claims, which is significantly adding to their insurance costs,” he said.
“Additional consultation is needed in this area to determine a more effective fee structure that reduces the overall cost for clients.”
“At William Buck, we project manage the entire claims process for clients in a transparent and timely manner to ensure the end result is a positive one,” he said. “Advice from a professional where the client’s interest comes first helps ease the burden during this difficult period.
“The Trowbridge report provides an excellent platform for the industry to work from; however, the management component of claims and the costs associated need more careful consideration,” said Mr Kitchen.