The fight for a return of commissions goes on with CALI

Australian life insurance companies and adviser groups are calling for broad changes to allow for a ‘default’ life insurance system to protect more people. The Choice and Access to Life Insurance (CALI) campaign is being run by large companies such as AIA Australia, MLC Life, TAL and Zurich, alongside the Association of Financial Advisers (AFA) and the Financial Planning Association of Australia (FPA).

The group released a research paper saying Australia should adopt a ‘default’ life insurance system that includes a variety of distribution methods to cater to individual needs.

The researchers said the solution was to avoid an erosion of advised financial support for those who need life insurance. A shared vision between government, regulators, insurance companies and other stakeholders is required, the paper says, to create a roadmap where life insurance meets the needs of Australians.

The discussion then goes on to commissions, and how removing this form of payment to financial advisers means consumers can’t or won’t spend the money on financial advice.