The Financial Planning Association (FPA) has called for a proposed standard on approved product lists to be significantly expanded.

“We are particularly concerned that the standard does not cover the need for the insurers to provide information to enable researchers, and ultimately financial advisers, to make informed decisions,” it says in a submission to the Financial Services Council.

The standard calls for best-practice research into products to look at the transparent underwriting process, to enable advisers to manage clients’ expectations. Researchers should also examine the importance of the customer in the underwriting process, medical evidence requirements and product design, policy terms and definitions.

“Much of the detail covered by these factors is found in the practices and internal policies of insurers, rather than any publicly available information,” the FPA submission says.

“Although researchers could collect data directly from insurers, we would prefer insurers to commit to providing all relevant information publicly.

“The standard should insist that insurers produce relevant and reliable information to assist financial advisers to select suitable products for their clients.”

The FPA wants the standard to include uniform disclosure requirements, to let advisers simply compare products.

It says product disclosure statements and additional disclosure documents from insurers should be presented in the same order from provider to provider. There should also be core standard meanings and expressions used by all insurers.

“These measures would promote higher-quality product evaluation and, ultimately, help advice and consumer decisions meet a minimum socially acceptable standard.”

The FPA has also raised concerns about who is responsible for information in approved product lists across the distribution chain.

It wants insurers and research houses to provide warranties on the fairness, accuracy and reliability of product information provided to advisers. And it wants both parties to say who the product is aimed at, and which clients may be unsuitable for cover.

“This approach should extend to insurers and research houses providing comparator tool output,” the submission says.