AFA calls out ISA on claims blame
Friday, 11 March 2016 12:52pm

Association of Financial Advisers chief executive Brad Fox has dismissed Industry Super Australia's calls to connect adviser remuneration with insurance claim decisions.

Arguing that linking the two is "like blaming a petrol station for a driver who chooses to speed," Fox said, "It is unreasonable to apportion blame where it does not belong ... The two are unrelated and it is nonsense to try and connect them."

Conversely, Fox suggested that the real take-away message from recent scandals about insurance claims is that advised clients often have better claims outcomes.

"These stories in fact highlight the value of arranging life insurance through a financial adviser who can identify life insurance needs, help put appropriate insurance in place and who then becomes their client's advocate at claims time," he explained.

"This is a far better option than blindly relying on insurance they may or may not have in their superannuation fund or have purchased without proper advice over the phone or internet."

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