Regulation stifling life insurers: TAL

Australia's underinsurance problem could be allieved by giving life insurers the power to hand out ancillery benefits, like riders, TAL says.

In a submission to the Financial System Inquiry, the insurer said regulations around life insurance were holding the industry back.

It proposed relaxing regulations that currently prevent life insurers from providing the same anxillery benefits to consumers, such as medical treatments.

"While the FSI Interim Report noted that the Inquiry would investigate further Australia's life-underinsurance problem, what TAL is seeking are changes to help address underinsurance so that people can have the right amount of financial protection they need," TAL Group CEO Jim Minto said.

TAL's other proposals included higher educational standards for advisers and increased powers for the Australian Securities and Investments Commission over the classification of products.