Life insurers have accepted that something must change if the industry is to be sustainable, according to Suncorp Life CEO Geoff Summerhayes.

“This year’s Financial Services Council (FSC) Life Insurance Conference is happening at an important time, and there has been universal acceptance for change since the last event,” he told Life+Health insuranceNEWS.com.au.

“Sustainability in the life industry attracted a range of views this time last year, but now the insurers, the regulators and the advice associations all agree about the need for change.”

Mr Summerhayes says the Government is also interested in the industry’s sustainability, and he suspects it will be a topic for the forthcoming financial system inquiry.

“The catalyst has been a series of poor profits by many insurers. Nobody is immune from the issues facing the industry.”

Mr Summerhayes – who is also chairman of the FSC life board – says the council is responding to industry concerns.

“I have seen a shift in the 22 life members of the FSC to broad consensus and alignment concerning the issues the industry is facing. There is no silver bullet, but there is a role the FSC and the regulators can play because we all want a sustainable industry.

“Life companies have to take the lead on change by looking at their practices.”

He says the industry must consider matters such as product structure, remuneration, claims and customer centricity.

“There is nothing insurers should be looking at in isolation if they want to improve sustainability in the industry.”

Mr Summerhayes will address the conference in a session that also features Australian Prudential Regulation Authority Deputy Chairman Ian Laughlin and KPMG partner Hoa Bui.

The conference is at the Sofitel Sydney Wentworth Hotel on April 3. Life+Health insuranceNEWS.com.au is a media partner of the event.