Urgency in Financial Reform: A Call for Swift Action
Urgency in Financial Reform: A Call for Swift Action
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Christine Cupitt, CEO of the Council of Australian Life Insurers, has strongly expressed the urgent need for rapid legislative reform in financial advice.
With an upcoming election threatening to stall legislation, time is of the essence to ensure timely implementation.
The financial sector is poised for the release of the second tranche of the Delivering Better Financial Outcomes (DBFO) legislation. On 10-11 February, the sold-out Professional Planner Advice Policy Summit will convene at Old Parliament House in Canberra, ACT, focusing on how essential reforms can broaden access to financial and life insurance advice.
During the summit, Cupitt will speak at the 'Reviving Life Insurance Advice Ecosystem' session to highlight the potential of onboarding a new class of adviser. This initiative aims to make life insurance advice more accessible, with the hope that legislative action will precede the forthcoming federal election.
Cupitt emphasizes the necessity for the government to expedite the legislative process. “Millions of Australians and their families are waiting in line for that affordable advice, and delays to the legislation mean that people are going to be waiting longer and not having access to the advice they need to build their financial safety nets,” she insisted to Professional Planner.
The urgency is amplified by the recent resignation of Minister for Financial Services, Stephen Jones, with no replacement yet announced. This development occurs as Labor signals its dedication to pushing forward advice reforms.
The forthcoming DBFO reform is especially critical in establishing the new advisory class. Cupitt asserts that, “Life insurance stands ready to implement the new class of adviser, but it can’t happen overnight.”
She further explains that developing and authorizing new educational courses for incoming advisers is a step-by-step process that requires time. These courses aim to equip advisers with the necessary training for effective service delivery, and also to set a foundation for their journey towards becoming fully qualified advisers.
Cupitt envisions these preparatory programs as initial steps towards more extensive adviser qualifications. “We want to make sure that the settings are right to encourage people to work for life insurance and provide that more simple advice, but also see that as a pathway for people to go away and get qualified to become a more comprehensive, fully qualified adviser,” she explained.
The summit discussions will additionally address potential improvements to the Life Insurance Framework, although the Council of Australian Life Insurers remains supportive of its current structure. This framework, which regulates commissions at 60 percent upfront and 20 percent ongoing, has drawn backing from Cupitt. She stated, “We have been very clear that we support commissions in relation to life insurance advice, and we support the Life Insurance Framework in its current form.”
If the government initiates consultations regarding changes to the framework, Cupitt assured, “We would participate in that consultation.”
This article references content originally reported by Professional Planner.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
In June 2025, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) provided an update on their joint review of life insurance premium practices. This initiative was prompted by concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations. - read more
In August 2025, the Australian Securities and Investments Commission (ASIC) released findings from a review of direct life insurance sales practices, uncovering persistent deficiencies despite previous regulatory interventions. - read more
Swiss Re Life & Health Australia has announced a suspension of new life insurance business activities in the country, effective October 2025. This decision stems from concerns over the sustainability of Total Permanent Disability (TPD) insurance products, which have seen a significant rise in claims, particularly related to mental health. - read more
Damien Mu, CEO of AIA Australia, has raised concerns about the sustainability of the current life insurance model, citing a significant increase in mental health claims and economic volatility. Speaking at the company's recent Thrive for Life presentation, Mu emphasised that the industry is facing structural changes driven by these factors. - read more
Australia's life insurance market is on a trajectory to reach $19.8 billion by 2029, according to a recent report by GlobalData. This growth is driven by a combination of demographic shifts, economic factors, and innovation in insurance products. - read more
Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - read more
Life insurance is a financial product designed to provide a safety net for your loved ones and business in the event of your passing. At its core, life insurance aims to deliver financial protection by paying out a lump sum or ongoing payments to a designated beneficiary upon the insured's death. - read more
Life insurance might not be at the forefront of your mind, especially when you're young and healthy. However, understanding the essence of life insurance early on can significantly impact your financial future and provide much-needed peace of mind. - read more
Financial security is one of the most important aspects of modern family life. Ensuring that loved ones are protected and well-supported in the event of an untimely death is a fundamental concern for many Australians. - read more
Life insurance is a critical component of a sound financial plan. It provides financial security and peace of mind to you and your loved ones, ensuring that they are taken care of in the event of your untimely death. - read more
Knowledgebase
Actuary: A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.
