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Matthews says personal accounts should provide automatic life cover

Friends Provident chief executive Trevor Matthews says the introduction of personal accounts offers a good opportunity to provide automatic life cover for savers.

Speaking at a Future of Life Assurance conference organised by Marketforce, Matthews said: “I think personal accounts would be a great opportunity for the industry to provide a useful amount of life cover to people. In Australia it has made a real difference.

“Virtually 95 per cent of the population are in the personal accounts equivalent system and have AUS$50,000 to $60,000 worth of life cover automatically. When they are auto-enrolled, they automatically get life cover. There’s a very competitive group life market in Australia but there are profits to be made.”

Matthews also criticised the Government’s stance on means-testing saying it could lead to a scandal.

He said: “I also believe the Government’s current stance on means-testing must mellow. It would truly be a scandal if thousands of savers found out at retirement that they would have been better off if they’d kept their contributions in their pockets.”


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The global economic downturn has shaken capitalism to its foundations, according to a global executive survey by the Economist Intelligence Unit (EIU).“Capitalism has changed fundamentally,” says Jason Sumner, the senior editor of the report, in his summary of the results. Executives now want more regulation in the banking sector and beyond, the survey found. The […]


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