New group may replace FSC

Work is under way to form a new industry body that would represent life insurers who distribute product via advisers.

Wednesday, November 25th 2015, 5:00AM

by Susan Edmunds

Partners Life, AIA, Asteron Life and Fidelity Life have all resigned from the Financial Services Council in protest at the recently-released Melville Jessup Weaver report, which was highly critical of life insurers’ commissions.

Their departure followed the resignations of AMP and Sovereign.

Fidelity Life boss Milton Jennings said his firm was among a number trying to form a group that would represent those insurers operating with an adviser model.

“We’ll look to bring in those who are in this model rather than doing direct sales or banking.”

He said if like-minded people formed a group it should be easier to find solutions for the industry.

Professional Advisers Association (PAA) chief executive Rod Severn said whether the PAA would have a role in that new organisation was “water cooler conversation” at the moment but he was keen for the association to play a part if it could.

“It might make sense to revamp the FSC because you’re always going to find it’s difficult to get consensus across the group. There’s been some internal communication in the PAA about what we could do.”

He said: “it’s worth discussing further, I’d like to see us have a part in whatever the eventual organisation is.”

Jennings said he had not yet spoken to the PAA but was speaking to adviser groups and organisations such as Share.

FSC chairman Rob Flannagan did not return phone calls.

FSC's remaining members:

ANZ Bank 
 BNZ Investments and Insurance 
CIGNA Life Insurance NZ Ltd 
FNZ Limited 
Gen Re LifeHealth 
Hannover Life Re of Australasia Ltd
Kiwi Insurance Ltd 
Mercer
 Munich Reinsurance Co of Australasia Ltd
Pinnacle Life 
Public Trust
 RGA Reinsurance Co. of Australia Ltd
SCOR Global Life Australia PTY Ltd
Swiss Re Life & Health Australia Ltd
Westpac Bank

Associate Members
Bell Gully 
BNP Paribas 
Bravura Solutions 
Chapman Tripp
Chatswood Consulting Ltd
 Davies Financial & Actuarial Ltd
Deloitte
 DLA Phillips Fox 
Ernst & Young 
KPMG
 Kensington Swan
Konnect Net Ltd
Mahony Burrowes Horner
 Melville Jessup Weaver 
Morningstar Research Ltd
PricewaterhouseCoopers 
Trustees Executors Limited 