« Sovereign Appoints New CIO | Main | Australia: Calls For Insurers to Fund Rehabilitation Expenses »

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

J-P Hale

Interesting stuff.

Without seeing the whole case the "too expensive" comment is far to subjective to take a reglatory position on. That's an opinion and based on the individual investigator or the client opinion, not regulation.

The client may be quite risk intollerant therefore a higher level of cover and a higher premium results.

Again this comes back to record keeping and risk tolerance. However, whether risk tollerant or risk adverse the risk problem is the risk problem, this should always be stated, because it's expensive it doesn't make it go away.

The other point that I have a challenge with, and thankfully it's not an option here, is parking your insurance in your super to eat up your super fund.

I find this approach somewhat underhanded and misleading. I've done the Aussie RG146/dip FS papers and some of their approaches aren't in the best interests of their clients.

Yes, there are some subtle tax advantages to the super approach, but it needs to be with an increased contribution and close management to ensure the intended saving goals for retirement are achieved.

The reality is clients don't volentarily increase their super contributions and end up sacraficing the growth of their super for the payment of insurance premiums.

However, the regulator is the regulator, and right or wrong you're playing in their sand pit.

I hope we see a more pragmatic approach to some of these areas as international practice isn't always best practice for cleints.

The comments to this entry are closed.

Subscribe to our quarterly mailing list

* indicates required
Email Format

My Other Accounts

Google Plus Twitter
My Photo
Chatswood overview image
Chatswood Overview Video
Industry research image
Industry Research Video
Site news image
Chatswood Site News and Usage Permissions Video
Slideshow 1
Insurance Robo-Advice in NZ - Situation Review and Future Prospects
Slideshow 2
Chatswood Data Services
Slideshow 3
Outline of IFA Guided Discussion on the Use of Commission Models
Slideshow 4
Medical with Life Cover - Opportunity for Advisers and Clients
Slideshow 5
Direct Versus Advised - Comparing Effectively with Online Product Offers
Blog powered by Typepad
Member since 08/2004

Non-governmental organisations