Life insurance industry leaders must act while they can to restore public confidence, Assistant Treasurer Josh Frydenberg says.

The Financial System Inquiry and Trowbridge report provide the Federal Government with options for reform and “the extent to which government intervention is required will depend ultimately on the industry’s own actions”, he wrote in a newspaper opinion piece last week.

He says the Trowbridge report probably presents the industry’s last chance to address longstanding issues on its own terms. The report is wide-ranging and well-informed, and does not shy from confronting difficult issues.

“While its recommendations are controversial in the industry, they are worth considering.”

Mr Frydenberg says it’s clear reform is needed, and it should be industry-led to restore confidence.