The Insurance Council of Australia (ICA) has opposed plans for more stringent adviser education requirements, arguing they will create a barrier to careers in the industry and will increase costs.

Requiring a bachelor degree-level qualification to advise on some products is unnecessary and will sideline insurers’ registered training organisations, it says in a submission to the Australian Securities and Investments Commission.

“Industry had embraced vocational educational programs from entry level to graduate diplomas and it is considered that education development should continue to be invested into these programs,” ICA says.

“It is unclear whether universities would be likely to offer a relevant subject to advisers seeking to meet the increased educational level.”

ICA says a “one size fits all” training model does not work for general insurance and new proposals could adversely affect career entry and future pathways.

The submission also opposes plans to reclassify consumer credit insurance as a Tier 1 product and says ICA is pursuing separate discussions on improving information provided to consumers.

Tier 1 products are considered more complex than Tier 2 offerings and require advisers to have a higher level of training.

“We submit it is appropriate for all general insurance products to be classified as Tier 2 products,” ICA says.