The National Insurance Brokers Association (NIBA) has cautioned against financial advisers being required to hold degrees, arguing there is a lack of courses on life insurance.

NIBA says obtaining a university degree with no relevance to life insurance will achieve little.

In its submission to the life insurance working group set up by the Financial Services Council and the Association of Financial Advisers, NIBA recommends more education, training and professional development based on the nationally approved vocational educational training framework.

“It is only through the development and delivery of courses under this framework that employers, industry bodies, regulators and government can be confident that proper training is being provided,” the submission says.

NIBA says its training college can provide a life insurance diploma that meets the requirements of the Australian Securities and Investments Commission’s Tier 1 accreditation.

But advisers are required to complete only the first part of the diploma to achieve this accreditation.

“We firmly believe that to have the full knowledge, skills and capacity to provide life insurance advice, and to understand the professional framework within which advice is given, a full diploma of life insurance is needed.

“NIBA believes there is no need for additional legislative requirements in this area, because there is already a direct statutory obligation on financial services licensees in relation to adviser education.”

The submission says licensees already must ensure their advisers are trained and competent to provide life advice to clients.

“The obligation exists today, and through NIBA College and other training bodies, there are nationally accredited courses that teach the knowledge, skills and competence to provide sound and professional personal life insurance advice.”