CALI pushes for financial advice accessibility amidst rising costs

Only 8% of Australians consider taking financial advice for insurance.

In a recent Senate inquiry, Christine Cupitt, CEO of the Council of Australian Life Insurers (CALI), emphasised the urgent need for accessible financial advice as Australians grapple with rising cost-of-living pressures. 

Speaking before the Senate committee, Cupitt highlighted that a significant portion of Australians find the cost of financial advice prohibitive, with services often exceeding $3,000.

Cupitt stressed that life insurers play a pivotal role in providing peace of mind for Australians during major life events such as buying a house, starting a business, or planning for retirement. 

She underscored the importance of the "Delivering Better Financial Outcomes and Other Measures Bill," which aims to enhance the accessibility of financial advice and support the work of financial advisers nationwide.

CALI's independent research indicates that seven in ten Australians are worried about the cost of life insurance due to current economic challenges. 

Cupitt noted that only 8% of Australians have received financial advice on life insurance in the past three months, despite over a quarter considering it. 

The proposed legislation would allow life insurers to offer simple advice on their own products, enhancing customer service and addressing basic inquiries without additional costs. 

This move, Cupitt argued, is crucial for helping Australians make informed decisions about their financial security.

Richard Klipin, CEO of the National Insurance Brokers Association (NIBA), echoed the sentiment, emphasising the essential role of insurance brokers in providing expert advice and advocating for clients. 

Klipin supported the reforms, noting the importance of balancing accessible and affordable advice, particularly as Australians face increased risks from natural disasters.

Both leaders acknowledged the need for further reforms and expressed a commitment to working with the government to ensure that more Australians have access to high-quality financial advice. 

The inquiry highlighted the broader objective of reducing red tape for advisers and simplifying the regulatory framework to improve financial outcomes for all Australians.

As the government progresses with the second tranche of reforms, Cupitt and Klipin remain hopeful that these measures will significantly improve the financial resilience and well-being of Australian communities.