AMP’s insurance arm has launched an online resource hub to assist advisers in implementing the Federal Government’s mandated Life Insurance Framework (LIF).
The online hub will feature a ‘cash flow modeller’, which will assist AMP affiliated advisers in assessing their readiness for LIF reforms.
The cash flow modeller allows advisers to compare current cash flow and capital valuation with future projections and understand how adjusting key financial levers could influence the health of their business.
The module will also include video tutorials to guide advisers through the LIF implementation process.
Greg Johnson, AMP’s director of insurance proposition, said the online hub will guide advisers through the multipronged LIF reforms and outline necessary steps to transition advisers’ business activity.
“We know advisers are experiencing a huge amount of change as the insurance industry adjusts to a new operating environment, and they need the right support and resources to continue to service the diverse and changing insurance needs of their customers,” Johnson said.
The Life Insurance Framework (LIF) is a Government-mandated reform package targeting the retail advice sector. The reforms enforce changes to adviser and licensee remunerations, better standards for quality of advice and insurance practices, more enforcement and monitoring of adviser practices, and improved industry efficiency. The reforms are set to kick in on January 1, 2018.
The LIF comes in response to a 2014 report by industry regulator ASIC, which found 45 per cent of cases involving upfront commission did not meet the legal standard for financial advice.
The launch of the resource hub follows a range of LIF-readiness activities for AMP aligned advisers, including professional development master classes, legislative updates and specialised training for practice staff and will be followed by webinar training next month, AMP said in a release.