Could Level Commissions Be Cut in Australian Life Insurance Framework?
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Insurance in the News on the Weekend

Six biggest mistakes Kiwis make while buying life insurance. A great article by Diana Clement, in the New Zealand Herald. Of course, I'm a bit biased, because it quotes me, and also a nice reference to Quality Product Research.

A couple of context comments: these articles are hard, because you have so little space. The challenge is to say something succinctly which communicates a broader, more complex, idea. Which is a long way of saying that the calculation of insurance required is obviously a bit more complicated than the rough guide I highlighted in the article. It is also about more than just life and income protection insurance. But given the readership it was important to start where they are, and bring them along a bit, rather than shout at them from a great distance.


Advisers represent less than half of the insurance market.  On Goodreturns, By Susan Edmunds. Important because it cover the estimates of market share by channel that we make quarterly. It is always nice to get quoted but I am worried that you might interpret this article about channel share as a vote in favour of 'less advice' and therefore 'less advisers'. It isn't. Obviously I am a fan of advice, and advisers. I also think you should be able to buy direct, and feel that these markets are quite different. It touches on the difficult question of accessibility and the debate about commission restriction which was raised in the MBIE FAA / FSP review paper. It is a lot more complicated than a couple of brief comments quoted in the article suggest.

Alongside this I would like to relate my experience from Friday: I had a working lunch with a group of about a dozen advisers talking about how to shift their businesses to a more professional fee-based model. The kind of future they envisage gives them a lot more freedom to focus on the advice part of the process, rather than the sale. But they all worried about accessibility issues. 



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