Priority Protection
A selection of cover options to cater for a broad range of insurance needs.
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{{label}}21 January 2020
It’s the start of a new decade and as with each decade you can’t predict everything that will happen. Below are some of the upcoming items for 2020 and beyond, and how we can help you navigate these changes.
The signing of the Joint Cooperation Agreement on 1 November 2019 signified the start of the transformation of both companies, and an opportunity to help even more people lead Healthier, Longer, Better lives. Our businesses are working on a product review and other developments that we will bring to market in 2020.
APRA has recently intervened in the Income Protection market with planned changes set for 31 March 2020. This theme is something that could continue beyond 2020.
FASEAs exam and education standards will need to be considered for existing and new advisers as the timeframes for existing advisers are fast approaching. Below is a summary of some key information and timeframes relating to the FASEA education standards:
Existing Adviser
New Entrant
More information of FASEAs exams and education standards can be found here.
In the meantime, keep a look out for AIAs exam workshops, or talk to your AIA CDM to find out how we can help you be better prepared. You can also utilise AIAs partnership with Kaplan Professional to help you meet the new FASEA education standards. Find out more.
Late last year, FASEA clarified its position on life insurance commissions, providing the green light for advisers to continue to be remunerated by commissions. As per the FASEA website, provided the client’s best interests are served as is already mandated by statute under the 2012 Future of Financial Advice reforms, then it’s ok to continue to be remunerated in this manner post 1 January 2020.
Moving beyond 2020, we will see the end of payments to advisers for ‘grandfathered’ commissions as a result of the Hayne royal commissions finding. ASIC will also begin to review the impacts of the Life Insurance Framework (LIF) in 2021. This reporting will be used to determine numerous factors including, whether the banning of commissions is required and reviewing how advisers are remunerated for their services. The final report is scheduled to be released by ASIC in 2022.
New commission rates were introduced on 1 January 2020, with maximum risk policy commissions for first year, reducing to 60% excluding GST.
We would like to work with you in 2020 and beyond, to help more customers lead healthier, longer, better lives.
To find out more contact your CDM.