Australians could face “generations of financial uncertainty” if the second tranche of advice reforms are not made law by the next federal election, life insurers have warned. 

The proposed changes, stemming from recommendations in the Quality of Advice Review, include allowing life insurers to give customers “simple” advice through a new class of advisers. 

Financial Services Minister Stephen Jones has said plans will be developed over the second half of the year, but opposition MP Luke Howarth says the government is “moving at a snail’s pace”. 

Council of Australian Life Insurers CEO Christine Cupitt says further delays will mean “millions of Australians and their families will be left behind in financial limbo”. 

“Doing nothing won’t just hurt today,” Ms Cupitt said. “It’ll set in motion a chain reaction over the next 10, 20 and even 30 years as many Australians remain priced out of getting the right advice to secure their financial future and look after their loved ones.” 

In August, the council commissioned a report to push for changes, detailing an “advice accessibility crisis”. 

The report said more than 40% of Australians want more personalised advice, compared with less than 25% who want general information only. 

“Australians have made it clear. They want these changes, and they want them now more than ever,” Ms Cupitt said. “People need someone to talk to about their financial future.

“They’re already dealing with sustained cost-of-living pressures. We shouldn’t be turning our backs on them as they try to take care of their loved ones.” 

Ms Cupit says many Australians are not getting advice due to accessibility barriers.

CALI data shows that within the past three months, 25% of people considered getting financial advice about life insurance, but only a fraction got it.

Ms Cupit says current rules leave “too many people underinsured and unprotected because they can’t afford to get the right advice about the best cover for them”.