Direct insurers may have to revisit their pricing models under recommendations made in the Trowbridge report on retail life insurance advice.

Commentary on the report has focused on what proposals to change remuneration mean for financial planners, but author John Trowbridge also addresses direct sales.

The report recommends an initial adviser payment be allowed for advised business only, so it can contribute to advisers recovering their costs. Direct business should have no entitlement to an initial adviser payment, because a policy is bought without personal advice being given.

Comparison websites selling life cover have been reluctant to comment when contacted by insuranceNEWS.com.au, but a spokesman for TAL, which owns the Lifebroker comparator, says the sites must change.

“Insurance comparison business models, like those delivering financial advice, will need to adapt to a new remuneration environment,” he said.

“We will continue to work proactively with industry participants and other stakeholders to help deliver better consumer outcomes and a vibrant financial advice industry.”