The Association of Financial Advisers (AFA) wants further life insurance industry reforms despite passage of the Life Insurance Framework bill last week.

“The Life Insurance Framework is wider than the bill,” CEO Brad Fox said. “It includes broadening approved product lists, simplifying statements of advice and, very importantly, a life insurer code of practice.

“Progress has been made in these areas, but more work is required from the insurers, [the Australian Securities and Investments Commission] and some licensees to carry their share of life insurance reform.”

Mr Fox says the association will push for reforms to be completed by the start of the new remuneration limits.

Financial Planning Association (FPA) Head of Policy and Government Relations Ben Marshan says the FPA welcomes the clarity provided by the bill.

“Our members have expressed uncertainty when recommending policies to their clients, in light of the information vacuum on life insurance since May,” he said.

“The passing of this legislation addresses these concerns and creates certainty for members when discussing and recommending life insurance.”

The Financial Services Council (FSC) says the Life Insurance Framework bill and legislation on professional standards for advisers will improve consumer outcomes in the advice sector.

CEO Sally Loane says the bills are “landmark pieces of reform”.

“We thank Financial Services Minister Kelly O’Dwyer for her support and ongoing leadership in driving these reforms and thank the Parliament for the bipartisan support it has provided to these reforms,” she said.

“The Government has delivered on its commitment to strengthen consumer outcomes in financial advice and life insurance and we are pleased to see these key pieces.”

Ms O’Dwyer said: “These reforms give effect to the agreement reached with industry.

“These reforms will better protect consumers and enable the sector’s viability.”

“[They ensure consumers will have access to financial advisers who are professional and competent, and who will put their interests first.”