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.

Published:Tuesday, 4th Feb 2025
Author: Paige Estritori

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.

Share this news item:

Insurance News

Newline Group Strengthens Australian Presence with Sydney Office and Key Appointment

14 Apr 2026: Paige Estritori

Specialty insurer Newline Group has announced the opening of a new office in Sydney, marking a significant expansion of its Australian operations. This strategic move aims to bring the company closer to its distribution partners and clients in the region, enhancing service delivery and fostering stronger relationships. - read more

Markel Insurance Introduces Tailored Financial Institution Products for Australian Market

14 Apr 2026: Paige Estritori

Markel Insurance has unveiled a suite of financial institution products specifically designed for the Australian market, featuring localized policy wordings to better address the unique needs of local businesses. This initiative reflects Markel's commitment to providing tailored insurance solutions that resonate with the specific requirements of Australian financial institutions. - read more

KPMG Survey Highlights Australian CEOs' Changing Views on Office Work

14 Apr 2026: Paige Estritori

A recent survey conducted by KPMG has unveiled a significant shift in the expectations of Australian CEOs regarding office work. The findings indicate that only 22% of those surveyed anticipate a full-time return to the office for corporate employees within the next three years. This marks a substantial decrease from the 82% reported in the previous year, signaling a notable change in leadership perspectives on workplace dynamics. - read more

IAG's Recommendations to the Federal Inquiry on Small Business Insurance

14 Apr 2026: Paige Estritori

Insurance Australia Group (IAG) has recently submitted its recommendations to the Federal Parliamentary Joint Committee on Corporations and Financial Services, focusing on the Inquiry into Small Business Insurance. In its submission, IAG outlines how small business insurance operates across its retail and intermediated channels and provides recommendations to support stronger, more sustainable outcomes for small businesses in Australia. - read more

ASIC Directs 11 Insurers to Refund $815 Million to Customers

14 Apr 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has ordered 11 insurance companies to refund a total of $815 million to customers following an investigation into pricing failures and governance issues. The investigation revealed that these insurers engaged in complex and reckless pricing models, lacked appropriate governance systems, and failed to adequately monitor and control their distributors, leading to millions of customers being overcharged. - read more