Life Insurance Blog

Weekly Life Insurance News Roundup

August 26th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

ClearView takeover bid ‘wholly inadequate’
Mid-tier life insurer ClearView Wealth has urged shareholders to reject a $220 million takeover bid from Crescent Capital Partners, labelling the private equity offer as “inadequate” and substantially undervalues the company.

The 867,000 members of self-managed superannuation funds (SMSFs) are a pretty independent lot. They’ve foregone the services of public-offer superannuation funds in preference for trusting their accountant or financial planner and backing their own abilities. However, it seems many of them are foregoing insurance as well – especially those that have been advised by accountants – and in so doing may be putting their nest egg at risk. Only about 13 per cent of SMSF members have life insurance through their funds.

Brokers credited for Suncorp’s strong results
Suncorp has reported a rise of nearly 60% in its net annual profit and was quick to credit the involvement of brokers for the success of its Commercial Insurance (CI) business. Net profit for the 2012 financial year came in at $724 million, compared to $453 million last year. Profit for the insurance division was $493 million, with life insurance earning $251 million, and the banking arm just $26 million – down from $84 million last year.

Weekly Life Insurance News Roundup

August 20th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Challenger suffers 43% FY profit slide
VOLATILE investment markets have pushed Challenger’s full year profit down 43 per cent, but the financial services group is confident it can improve earnings in fiscal 2013. Chief executive Brian Benari said ongoing volatility affected Challenger’s statutory profit because life insurance accounting standards required the statutory net profit result include movements in the value of assets and liabilities.

Churning up a heated debate
There are mixed views and few facts concerning precisely how much “churn” occurs within the life/risk sector, and how many advisers might be deemed serial offenders where the “churning” of policies is concerned.

Life readies for new cap increases
Insurers are preparing for the impact of the Life and General Insurance Capital (LAGIC) reforms, increasing their capital reserves. Challenger yesterday revealed that the Australian Prudential Regulation Authority (APRA) had proposed transition arrangements to its life business, for the new capital requirements that will be required after APRA’s review.

Life Insurance Weekly News Roundup

August 13th, 2012 | Posted by Editor in News - (Comments Off on Life Insurance Weekly News Roundup)

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).

Weekly Life Insurance News Roundup

August 7th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Should conflicted financial advisers be called agents?
If you operate under an institutionally owned dealer group, should you be allowed to call yourself a financial adviser rather than a mere agent? Read on for Paragem managing director Ian Knox’s arguments on the subject.

FSC announces new insurance framework
Financial Services Council (FSC) chief executive John Brogden has announced a new life insurance sales policy revolving around the clawback of commissions if a policy lapses in a certain period.

TAL CEO rejects data indemnities
Australia’s major life insurers need to jointly develop a dictionary of common data terms and descriptors, according to the chief executive of major insurer, TAL Limited, Jim Minto.