Govt called to ‘quickly’ implement FSI proposals

In its pre-budget submission, the Actuaries Institute said it is "pleased" that the government has endorsed certain recommendations laid out in the Financial Services Inquiry report, including the introduction of a mechanism to facilitate the rationalisation of legacy products in the life insurance and managed investments sectors.

"The FSI recommended action to resolve the situation and the government has accepted that recommendation. We therefore urge the government to pursue this measure more vigorously," the institute said.

"Rationalisation of life insurance legacy products has been an issue for a considerable time now, despite general acceptance that the proposal has merit."

The Actuaries Institute also said it strongly supports the government's intentions to remove legislative impediments to product innovation and the options to pre-select a comprehensive income product for retirement (CIPR).

"The introduction of a CIPR-style product option should deliver greater income security and protection throughout retirement," the institute said.

Further, the submission praises the government's proposal to review the costs and benefits of increasing access to data that could improve the quality of business and consumer decision-making and public policy development.

"With the rapidly growing utilisation of data analytics, the provision of increased, cost-effective access to public data should help drive innovation and promote economic growth," the institute said.

"Providing insurers with greater access to public health data, for example, could lead to improved health outcomes at lower cost to society."