We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
This legislation marks a pivotal first step in a series of upcoming financial advice reforms initiated by the federal government. It mandates brokers to obtain consent when charging commissions for personal advice, aiming to foster better transparency and affordability in the financial advice provided.
According to the National Insurance Brokers Association (NIBA), these reforms will play a critical role in ensuring that comprehensive risk advice remains both accessible and affordable across Australia. "We are eager to partner with the government and regulatory bodies to implement these reforms," said a representative from NIBA. "Our focus is to support our members in navigating these changes without compromising the quality of advice they deliver."
NIBA has pledged to work closely with its members throughout the year to facilitate adherence to the new legislative requirements. The organization is set on equipping its members with the necessary tools and guidance to continue offering premium services while ensuring compliance with the latest standards.
Meanwhile, insurers are also gearing up for the next round of reforms. A spokesperson from the Insurance Council of Australia expressed readiness to engage in phase two consultations. "The subsequent phase of these reforms addresses the unmet demand for financial advice among individuals with straightforward financial scenarios," the spokesperson remarked. "We are keen to explore the opportunities this presents."
Stephen Jones, Financial Services Minister, emphasized that the new legislation augments transparency and strengthens consumer safeguards in personal insurance advice. He mentioned that the next set of reforms, slated for development later this year, aims to enhance both the reach and affordability of financial advice across the board.
"Our forthcoming reforms will modernize key aspects of financial advising, including the revision of statements of advice and the best-interests duty. Additionally, changes are set to enable financial institutions to provide what we term 'simple' advice, a valuable addition for consumers with straightforward needs," Jones noted.
It is worth mentioning that the recently passed bill included crucial amendments to rectify draft errors that might have inadvertently banned commissions for brokers providing general advice. Furthermore, it contains a provision allowing individuals to leverage their superannuation accounts to cover costs associated with receiving personal financial advice from independent advisors.
These industry-changing reforms promise to reshape the financial advisory landscape significantly, making quality advice more transparent, accessible, and affordable for all Australians. Immediate and collaborative efforts from industry players are cited as imperative for a smooth transition. As reported by Insurance News Magazine, Assistant Treasurer Stephen Jones has indicated his firm stance against succumbing to populist politics concerning affordability, emphasizing a balanced and well-developed approach to these reforms.
Published:Wednesday, 24th Jul 2024
Source: Paige Estritori
| Allianz's Payout Reduction Approved in Car Claim Dispute 05 Sep 2024: Paige Estritori In a landmark decision, the Australian Financial Complaints Authority has ruled in favor of Allianz, allowing the insurer to significantly reduce its payout for a car damage claim due to a misdescribed vehicle model. - read more |
| Zurich Welcomes Fresh Leadership in Risk Management for ANZ Region 05 Sep 2024: Paige Estritori In a dynamic move, Zurich Financial Services Australia has named David Wainwright as the new Chief Risk Officer for the Australia and New Zealand region. This follows the retirement announcement of the current CRO, Jaimie Sach, a veteran with a distinguished 30-year career in the wealth management sector. - read more |
| AFCA Upholds Insurer’s Decision in Breast Cancer Claim Case 04 Sep 2024: Paige Estritori A recent ruling by the Australian Financial Complaints Authority (AFCA) has affected a woman’s critical illness claims, as her diagnosis came within mere days of her policy's eligibility period drawing to an end. - read more |
| Insurer Compensates Claimants in Wake of Transition Issues 04 Sep 2024: Paige Estritori On September 2, 2024, an insurer has been mandated to compensate over 900 policyholders due to its failure to adhere to claims processing time frames outlined in the Life Insurance Code of Practice. - read more |
| Medical Professional Coverage Costs Under Scrutiny 04 Sep 2024: Paige Estritori Amid rising concerns, the Australian Medical Association (AMA) has flagged the escalating expenses associated with indemnity insurance premiums as a serious issue that demands attention. - read more |
| The Ultimate Guide to Comparing Health Insurance Plans in Australia Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more
|
| Understanding Health Insurance: A Starter's Guide for Young Australians Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more
|
| Keeping Your Family Protected: The Importance of Adequate Health Insurance Coverage The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more
|
| 5 Tips to Save on Health Cover as an Australian Senior Finding the right health insurance coverage is a critical concern for Australian seniors, who often face the dual challenge of managing chronic health conditions and maintaining financial stability in retirement. As the cost of healthcare continues to rise, the importance of securing an affordable health cover that still meets their needs cannot be overstated. - read more
|
| The Importance of Comparing Health Insurance Extras for Maximum Savings Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
|
|
The Digital Age of Health Insurance: Comparing Policies Online The dawn of the digital age has significantly transformed the way we approach nearly every aspect of our lives, and the domain of health insurance is no exception. With the arrival of innovative digital tools, the health insurance landscape has undergone a striking evolution, allowing for unprecedented accessibility and convenience in managing healthcare coverage. - read more
|
|
|
The Importance of Comparing Health Insurance Extras for Maximum Savings Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
|
|
|
The Ultimate Guide to Comparing Health Insurance Plans in Australia Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more
|
|
Top 10 Tips to Find Affordable Health Insurance in Australia Finding affordable health insurance can be a daunting task, particularly in a landscape as diverse as Australia’s. With a myriad of options available, it's crucial to understand the financial support mechanisms in place that can ease the burden of healthcare costs. One such mechanism is the health fund rebate, a key feature of the Australian health insurance system designed to make healthcare more accessible. - read more
|
|
|
Keeping Your Family Protected: The Importance of Adequate Health Insurance Coverage The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more
|