APRA deputy chair criticises life insurance sales cultureBY ALEX BURKE | WEDNESDAY, 11 MAR 2015 12:20PMSales culture in the life insurance industry is undermining standards of good practice, according to APRA deputy chair Ian Laughlin. Related News |
Editor's Choice
Final report into Life Code makes 85 recommendations
|The final report of an independent review of the Life Insurance Code of Practice has been finalised, proposing some 85 recommendations across aspects of mental health, customers vulnerability, claims handling, and sales practices.
Treasury looks to reform regulation on consulting firms
|Treasury has released an options paper to improve the regulation of accounting, consulting and auditing firms after the blowout from KPMG's whistleblower probe that found it used confidential client data in the pursuit of more tenders.
Bell Potter launches private wealth platform
|Bell Financial Group (BFG) has launched Bell Potter Private Wealth (BPPW), a new platform that helps service its 300,000 clients with $92.1 billion in funds under advice.
Esencia seals third merger
|Esencia Wealth has continued its national expansion strategy, merging with New South Wales-based Cove Financial Group in a deal that brings around 650 clients and four financial advisers into the business.
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
Judith Fiander
CHIEF EXECUTIVE OFFICER
AUSTRALIAN PHILANTHROPIC SERVICES
AUSTRALIAN PHILANTHROPIC SERVICES
When Judith Fiander first walked in the doors of Australian Philanthropic Services her intention was to volunteer for a few months. Fast forward 14 years and she is the chief executive. Eliza Bavin writes.
You have to look no further than the damage the direct life insurance business model has delivered to the life insurance industry. The commoditisation of life insurance as a no advice product which can be easily and quickly changed or altered (with no medicals!) from one provider to another destroys the value and importance of the product itself and therefore dilutes the importance the consumer places around high quality, technical advice and the long term relationship with an adviser that can deliver immeasurable benefits when needed.
Life Insurance is an advice and solutions driven business. Life Insurance advisers do not want to waste their precious time meeting and talking with people who do not have a need for a solution. It is an advisers role to seek out, work with and relate to people who have a clear need for the advice and solutions they may be able to offer.
Unfortunately, the vast majority of consumers will not pay a fee for Life Insurance advice without having a solution delivered or purchased which satisfies their need.
The Life Insurance business in terms of product is a profit driven business in a highly competitive space. They need to gain a competitive edge over their business rivals to ensure a profit is made. This business is an advice and solutions business (ie product sales).
Without sales of product, the Life Insurance companies die, so by Ian Laughlin stating that there is a sales culture in the Life Insurance industry is stating the blatantly obvious.