MLC Life welcomes Govt’s QAR commitment

Yasmine Raso

Senior Journalist, Financial Newswire

3 August 2023

Australian life insurer, MLC Life Insurance, has acknowledged the Federal Government’s commitment to put into effect 14 of the 22 recommendations out of the Quality of Advice Review (QAR).

While the insurer said this was a step forward in the right direction, it also joined industry-wide calls to provide access to simple personal advice for Australians from insurers; to legislate consumer protections including education standards, quality assurance and oversight, and the scope of simple advice; and to expand the Life Insurance Code of Practice.

“We’re pleased to see the Albanese Government delivering better financial outcomes for Australians, with clear reform to make financial advice more accessible and the intention to allow members of superannuation funds to access advice on an affordable basis through their fund,” Kent Griffin, Chief Executive Officer of MLC Life Insurance, said.

“But more can be done to look after those that need access to affordable, simple advice. Australia’s superannuation system is world-class, in providing consistent wealth creation to working Australians while providing them a default base cover of insurance.

“The government’s announcement to allow super funds to provide advice to their members is a terrific step in the right direction. The same notion that would see super funds provide customer service so their members have access to personalised information to make the right choice for their circumstances, is also true for Australia’s life insurers.”

Michael Rogers, Chief Individual Insurance Officer for MLC Life Insurance, said the QAR identified the current provisions for Australians seeking simple insurance advice were inadequate and that all Australians don’t have the same means and opportunities to invest in a financial adviser for a simple insurance policy review or to check their coverage.

“Australians are asking pretty basic questions, all ultimately seeking appropriate coverage that’s affordable and accessible, and it is virtually impossible to help if we can’t provide simple advice to our customers that suits their personal circumstances,” he said.

“Every day, customers contact us for help as they seek to ensure they have the most appropriate cover at an affordable price. In instances where the customer no longer has an adviser, the current advice rules mean we’re simply not allowed to assist them.

“This isn’t about making sure more people have more insurance, we want to make sure our customers have insurance that’s affordable, accessible and appropriate. It is clearly in the customer’s best interest to enable them to get the help they need from their insurer, to help them understand the appropriateness and affordability of their cover, and some key guardrails will help ensure consumers are protected.

“These protections are all about making sure consumers are given the advice that’s appropriate to their needs, so we can offer affordable and appropriate insurance to everyone, not just those that can afford financial advice.”