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Life Insurance Weekly News Roundup

August 13th, 2012 | Posted by Editor in News

Churning: FPA picks holes in FSC plans, fails to rule out clawbacks
FPA CEO Mark Rantall has told Wealth Professional that the FSC shouldn’t penalise financial advisers for acting in their clients’ best interests, but he hasn’t ruled out clawbacks. On the controversial issue of clawbacks, Rantall pointed out that most life insurers already clawback 100% of an adviser’s commission should their client’s policy lapse within 12 months. Whether this provision – and the FSC’s suggested additional 75% clawback for lapses within two years and 50% clawback for lapses within three – are reasonable is another question.

Bidding War for ClearView?
Suncorp Limited (ASX: SUN) is rumoured to be considering a rival bid for ClearView Wealth (ASX: CVW) according to reports in the Australian Financial Review (AFR).

Woolworths Insures to Ensure Growth
Woolies announced on Monday, 6th August, that it has expanded its insurance offering, launching car and travel insurance in addition to its current pet and life insurance products. The company will also launch home and contents insurance in the coming months.

DEATH BENEFITS: Google workers get sweet perks for life and death
IT’S no secret Google employees get a sweet deal when it comes to job perks, including gourmet food, on-site doctors and free haircuts. But until now, we didn’t know just how good they have it. Google’s chief people officer Laszlo Bock has revealed a new “death benefits” that means employees are covered not just in life, but in death.

Churning: life insurers under attack for punishing honest financial advisers
Australia’s life insurers have come under an incredible attack for the “disgraceful” way in which they have endorsed a churning policy that will unfairly punish advisers. The proposed churning policy, which will see advisers lose 100% of their commission should a client’s insurance policy lapse within the first year, 75% if the policy lapses within the second year and 50% if the policy lapses within the third year, is deeply unfair to honest financial planners, says Synchron director Don Trapnell.

Life insurance industry under pressure
Attracting new capital to build a more sustainable life insurance industry is currently one of the major challenges faced by Australian insurers, according to TAL. Jim Minto, managing director of Tal said this is a challenge because with the lack of interest in life insurance investment globally, Australian life insurers must be able to show that the market does not have the weaknesses that other markets around the world have.

This material is not intended to constitute personal advice, and must not be relied on as such. This information has been prepared without taking into account your objectives, financial circumstances or needs. Before making a decision based on this material, you should consider the appropriateness of this material having regard to your own objectives financial circumstances and needs. You should consider obtaining independent advice before making any decision.

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