News Article

The COVID-19 pandemic has given rise to much reflection on the ever-present topics of execution and witnessing of documents. 

Last week, APRA published a gloomy set of quarterly numbers showing that the life insurance industry made a total net loss after tax of $179 million for the March to June 2020 quarter on individual income protection products (IP). 

Inevitably, the broadening of superannuation early release rules as part of the COVID-19 response has led us back to debating whether we should extend the existing First Home Super Saver scheme.

While it may surprise some to know that the original concept of life insurance can be traced back millennia to ancient times, there is no doubt the life insurance industry plays a vital role by providing financial protection when people need it most.

Recently, your FSC team intently watched the Senate live stream as divisions were called for a critical piece of reform to superannuation – Minister Jane Hume’s 'Your Super, Your Choice' bill enabling every Australian to choose a superannuation fund. 

Advocacy by the FSC, along with the Financial Planning Association of Australia (FPA) and the Association of Financial Advisers (AFA) – to ASIC and the Federal Government has secured valuable clarity on the parameters for electronic renewals of Ongoing Fee Arrangements (OFAs).

Now that the hurly-burly’s done and the battle is lost and won, what is the outcome for fees and costs disclosure?

The FSC recently announced that the Investment Board Committee had been reconstituted into the Fund Management Board Committee (FMBC), which is supported by the Investment Expert Group (IEG).

Online attendees at this week’s FSC Life Insurance Summit heard numerous industry leaders discuss the substantial challenges facing the life insurance sector.

The life insurance industry is at an “inflection point” which challenges its long-term sustainability and demands fundamental change: this was the consensus view from a panel of industry leaders comprising regulators, re-insurers and product manufacturers.

Financial advisers have been “inundated” with enquiries from clients during the COVID-19 pandemic and people without advisers had struggled to find someone to help them, the FSC’s Life Insurance Summit was told.

The Fee Disclosure Statement (FDS) became part of our advice regulation the Future of Financial Advice (FOFA) reforms nearly a decade ago.