The introduction of choice of fund legislation will help drive a pick-up in the risk insurance sector in Australia, according to AXA’s general manager, Financial Protection, Tassin Barnard.
Barnard told a conference in early February that three factors were contributing to a more promising outlook for risk insurance in Australia:
n industry action to address the issue of under insurance;
n the overhaul by leading insurance companies of their current marketing and distribution practices; and
n the introduction of the Federal Government’s superannuation choice legislation.
Barnard said choice would be beneficial to super fund members, providers, financial advisers and the financial service sector generally, while ultimately having broad community benefits through its encouragement of personal savings.
“By creating a specific reason for people to review their current super arrangements, choice will also lead to discussion about other forms of savings and investments,” she said.
Barnard also said she did not believe the choice regime would lead to a battle between competing funds for members.
