CEO Update: Royal Commission
ALI Group stands proudly alongside Mortgage Broking Industry
As a long-time partner of the mortgage broking industry, the recently published recommendations of the final Royal Commission report have been a hot topic for us. Unfortunately, like many others, we believe the findings related to mortgage brokers to be both unbalanced and unjust. ALI stands proudly alongside mortgage brokers as these recommendations continue to be debated and policy to be considered. We strongly believe in the service mortgage brokers provide customers, the competition they bring to the home lending market and as an alternative channel for other important financial products like loan and mortgage protection.
ALI has been an active partner of the MFAA’s Don’t Kill Competition campaign and we continue to have active discussions with politicians, regulators and other stakeholders as part of an education process. Australians value the service mortgage brokers provide.
The importance and value of mortgage broking to Australians is fundamentally proven in that almost 60% of Australians seeking home loans use mortgage brokers. This percentage has been increasing steadily over the past 30 years as consumers come to realise the value of choice, convenience and increasingly, expert advice on what is still a significant and complex financial transaction.
Recommendations on Insurance
The commissioner also made recommendations on the regulation of insurance – specifically, funeral insurance, claims administration and the use of aggressive sales techniques to unsuspecting consumers. We welcomed these recommendations as they will go towards improving customer outcomes and increasing the confidence of consumers in the important role of insurance and its providers.
Business as usual for Loan and Mortgage Protection
From an insurance and loan protection perspective, it’s business as usual as we continue to support brokers to educate and protect Australian home and property buyers every day with high-quality loan and mortgage protection. Financial hardship as a result of serious illness, death or involuntary loss of employment are real risks impacting Australians every day. Educating them on these risks and protecting them with affordable quality insurance is a noble mission which leads to good outcomes for those individuals, their families and society more broadly.
Huy Truong - ALI Group CEO