In a recent Senate inquiry, Christine Cupitt, CEO of the Council of Australian Life Insurers (CALI), emphasized the critical need for accessible financial advice as Australians confront escalating cost-of-living pressures.
Cupitt underscored that a significant number of Australians find the expense of financial advisory services prohibitive, often exceeding $3,000. Addressing the Senate committee, she highlighted the pivotal role of life insurers in providing reassurance during major life milestones such as property purchases, business ventures, and retirement planning.
The focus of Cupitt’s address was the “Delivering Better Financial Outcomes and Other Measures Bill,” designed to bolster the accessibility of financial advice and support the nationwide efforts of financial advisers. According to CALI’s independent research, seven in ten Australians express concerns about the affordability of life insurance amidst current economic challenges.
Despite the high level of interest, Cupitt pointed out that only 8% of Australians have sought financial advice on life insurance in the past three months. The proposed legislation aims to enable life insurers to offer straightforward advice on their own products, thereby enhancing customer service and addressing basic inquiries without additional costs. Cupitt argued that this initiative is crucial for empowering Australians to make informed decisions about their financial security.
Richard Klipin, CEO of the National Insurance Brokers Association (NIBA), echoed these sentiments, highlighting the vital role of insurance brokers in providing expert advice and advocating for clients. Klipin expressed support for the reforms, emphasizing the need to strike a balance between accessible and affordable advice, especially in light of increased risks from natural disasters.
Both leaders emphasized the importance of ongoing reforms and affirmed their commitment to collaborating with the government to expand access to high-quality financial advice. The inquiry also emphasized broader objectives, such as reducing regulatory barriers for advisers and simplifying the regulatory framework to enhance financial outcomes for all Australians.
As the government advances with the second phase of reforms, Cupitt and Klipin expressed optimism that these measures will significantly enhance the financial resilience and well-being of Australian communities.
