Acknowledging the challenges the Life Insurance Framework will pose for advisers, Assistant Treasurer Josh Frydenberg said life insurers must play a role in helping them with the change.
During a speech at the Financial Services annual conference on the Gold Coast last week, Mr Frydenberg said he is “very conscious of the challenges” the Life Insurance Framework presents advisers.
He added these challenges were made clear during “many discussions” he had held with advisers since being appointed assistant treasurer.
Looking to the insurers in attendance, Mr Frydenberg said if there is a message he could provide them, it was that advisers are “looking to you to help them transition and navigate these significant reforms”.
“Making sure all parts of the industry thrive as a result of these reforms should be seen as a shared goal and given the level of underinsurance in Australia,” Mr Frydenberg said.
“Australians need the industry to come together to improve the quality of advice and to ensure it remains accessible to those that need it most.”
Mr Frydenberg also acknowledged with all the compromises made during debates around the reforms, “neither side got everything they wanted”.
“But by coming to the table, each side was able to obtain a better outcome for their members than they would have in isolation,” he said.
“Of course, implementing the proposals will require ongoing cooperation.
“Industry, along with the government, continues to flesh out the detail of this package and while there is considerable detail to be finalised, the government will not lose sight of the end objective – better outcomes for consumers.”