The Association of Financial Advisers (AFA) has come out in strong defence of the role of advisers in the life insurance market.

CEO Brad Fox says advisers help clients achieve better outcomes when dealing with insurers because “advisers know the life insurance needs of Australians better than anyone else”.

He says advisers have an important role to play in helping consumers know how much insurance cover they have.

“Gaps in life insurance coverage are common as Australians move through life stages and either do not get the cover they need to meet their change in personal circumstances, or do not understand what the cover they have will actually entitle them to,” he said.

“Speaking with a financial adviser can help [policyholders] identify gaps and the adviser can, if appropriate, put other policies in place to help fill those gaps.”

Advisers are also “real advocates” for consumers when claiming on their insurance, Mr Fox says.

“There is no one else in the claims experience that offers the service that advisers do. If you are in the unfortunate position of having to make a claim, you want an expert on your side.”

Mr Fox has rejected recent calls from Industry Super Australia to connect adviser remuneration with the decisions of life insurers on paying claims.

With media controversy raging over CommInsure’s alleged failures to pay claims, Mr Fox argues that “[it] is unreasonable to apportion blame where it does not belong”.

“To link insurance claims decisions to the remuneration paid to an adviser is like blaming a petrol station for a driver who chooses to speed. The two are unrelated, and it is nonsense to try and connect them.”