[The Wrap] Brace yourself for a big week

There are three significant reports about to hit the airwaves which will all have some impact on the financial services industry. On Tuesday afternoon the Financial Markets Authority/Reserve Bank conduct report on life insurance companies is due out.

My prediction is that it will be much more strongly worded than the previous report on the conduct of banks. It seems many felt that one was more of slap with a wet bus ticket, if even that. Also it will have a strong focus on commissions. The FMA has made its view very clear that it doesn't like commissions and wants changes. The Reserve Bank joined that party with its Monetary Policy Statement at the end of last year.

In it there as a graph which said that life insurance commissions in New Zealand were some of the highest in the world.

Their arguments often seem academic rather than founded in the practical reality of selling life insurance. Maybe a few of them should get out and have a crack at being an insurance adviser?