Life insurers seek lead generation carve-out

Mike Taylor

Managing Editor and Publisher

10 June 2026

The major life insurers are looking for a carve-out to ensure they can maintain lead generation activity on life insurance sales in the event the Government moves to legislatively curb such practices in the financial services sector.

The Council of Australia Life Insurers (CALI) has used its submission to Treasury to argue that a blanket ban on lead generation would prove damaging in terms of bridging the life insurance c=gap.

CALI chief executive, Chirstine Cupitt said the life insurance industry was seeking an exemption from any broad lead generation ban or other restrictions the Federal Government is considering in the wake of the Shield and First Guardian collapses.

“Life insurance lead generation plays an important role in helping customers access information, compare products and obtain life insurance protection,” Cupitt said. “A blanket ban for life insurance risks limiting legitimate information and connections that support customers to build their financial safety net.”

Cupitt said a blanket ban would prevent life insurers from receiving customer enquiries from comparison websites, a popular and convenient way for customers to access basic information about financially protecting themselves and their loved ones.

“One in two Australians want personalised advice about life insurance and more people are turning to online tools, including market comparison sites, to learn about life insurance,” she said.

Lead generation from these sites provides a safe and quick way for potential customers to get more information about the life insurance products that might suit their needs.

“The government should not cut off safe, regulated pathways that help Australians access life insurance.”

Cupitt said CALI would be arguing a strong case for exemption, as well as the urgent need for the Delivering Better Financial Outcomes legislation to be released in full over the coming weeks as the government looks to finalise its promised reform package.

“Australians need easier access to life insurance, not more barriers,” she said.

CALI said an exemption should apply where:

• lead generation is undertaken for the sole or dominant purpose of promoting, referring or facilitating access to a life insurance product or service; and
• the initiating party complies with obligations under the Corporations Act, ASIC Act, Privacy Act and other consumer protection laws.

“This approach keeps reforms tightly focused on harmful conduct while preserving legitimate customer access to life insurance protection,” Cupitt said.