MLC Life Insurance has urged the Federal Government to lift restrictions barring life insurers from providing customers with “simple advice” about their insurance needs. 

“Australians are asking pretty basic questions, all ultimately seeking appropriate coverage that’s affordable and accessible,” Chief Individual Insurance Officer Michael Rogers said. 

“It is virtually impossible to help if we can’t provide simple advice to our customers that suits their personal circumstances.” 

The Council of Australian Life Insurers (CALI) has previously pushed for a similar change after Financial Services Minister Stephen Jones announced in June that super trustees will be allowed to provide advice to members, including about life insurance held within their superannuation. 

Mr Jones’s announcement is part of the Government’s response to the Quality of Advice Review final report’s recommendations.  

MLC says life insurance plays a critical role in providing financial security and peace of mind for Australians and protecting them in life’s most vulnerable moments. Yet millions of Australians are unable to speak to their insurers about their personal circumstances to ensure they have the right coverage. 

“The same notion that would see super funds provide customer service so their members have access to personalised information to make the right choice for their circumstances, is also true for Australia’s life insurers,” CEO Kent Griffin said. 

The insurer says in most cases customers are simply seeking guidance to help them make a decision about their coverage in the face of changing life circumstances, including the birth of a child, the purchase of a home, or a change in their employment. 

“For many Australians a financial adviser is an important investment, but for some they are simply looking to check their coverage or review their policy,” Mr Rogers said. 

“In instances where the customer no longer has an adviser, the current advice rules mean we’re simply not allowed to assist them. This isn’t about making sure more people have more insurance, we want to make sure our customers have insurance that’s affordable, accessible and appropriate.”