Trowbridge salutes risk reforms package

Really !!! I wonder what the report will look like in 2018. Maybe take the same road the UK did ??

Mr Trowbridge was reported to have filtered-out all dissenting voices from his Committee in his report. The whole thing has been an institutional orchestrated deception from the start. Even the AFA walked away from Trowbridge. Trowbridge is just a mouthpiece for the large institutions who are immune from these changes because they have their advisers on a salary, and also happen to be the primary organisations responsible for conflicted advice. We understand that high upfronts are not sustainable, but Hybrid 80/20 should have been where this landed, not 60. There is no doubt that these changes are designed to squeeze-out the independent advisers in favour of the big end of town such as banks who have done nothing but sully the industry with their high profile advice failures, Senate enquiries and large compensation payouts to their victims. Insurance companies can now raise their renewal premiums beyond client affordability (as some have done recently) and when the client cancels or wants a better option, it will be the Adviser who wears the clawback for three years. Reverse selection (clients cancelling in the wake of large price hikes) accounts for far higher lapses than churning by unscrupulous advisers ever has. Now the insurance companies are free to gouge the client. Australia suffers a chronic underinsurance problem which is a massive liability on the public social security system. If you want more people insured with non-conflicted insurance advice, then you should be encouraging your third party distribution, not sitting in your arm chairs making decisions to bolster your own organisations, reducing choice and killing off the competition.