The Australian Institute of Superannuation Trustees has again called for all life insurance commissions to be banned.

In a submission to a Senate inquiry into consumer protection laws, it argues there is no evidence to support the idea commissions deliver better life insurance advice.

“It is reasonable to assume that more than one-third of life insurance advice received by retail clients is still not in their best interests,” the submission says.

“Despite the recommendation of the Financial System Inquiry that upfront commissions should be abolished, subsequent proposals did not go this far.”

The institute notes upfront commissions will remain even after the Life Insurance Framework legislation takes effect this year.

“No evidence has been presented that these [framework] changes will be sufficient to overcome widespread problems with the quality of life insurance advice. There is no basis for allowing the retail life insurance industry to continue to pay commissions, which have been banned for the rest of the financial services industry since 2013.”