how low can this go?, page-31

Reality is, these products are the lowest of quality.

The net assets are calculated on a NPV of their trail commissions but they aren't safe. The Royal Commission will expose hard sale tactics (as if we didnt already know) but most importantly, the significant decline rates at time of claim in comparison to policies that are underwritten upfront. Lapse rates will accelerate, reducing trailing commission.

It will also illustrate how these companies hide behind a 'general advice disclaimer' when in reality they are effectively providing more than that to sell.

The RC, IMO, will result in changes to being able to hide behind general advice to sell and receive commission (as it already has for bank super products). A class action wouldn't surprise me either as call transcripts are likely to indicate that more than 'general advice' was provided, especially in the case the client had existing insurance cover or around accidental death policies.