10 December 2020
Insurers welcome passage of Financial Sector Reform Bill
The Insurance Council welcomes the passage today through Federal Parliament of the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020. Since early 2019, the Insurance Council and its members have been working with the Government and regulators on implementation of the Royal Commission recommendations relating to general insurance.
Passage of the legislation now provides insurers with the certainty needed to put in place new processes and systems to bring the benefits of these reforms to consumers.
Insurance Council CEO, Andrew Hall said:
“The Insurance Council and its members now look forward to working with Commonwealth Treasury, ASIC, and other groups such as consumer advocates to bring these reforms to life.
“There are practical implementation issues that we are keen to see resolved so the legislation can maximise consumer outcomes as effectively and quickly as possible.”
While most of the new requirements build on existing obligations, for example in regard to claims handling, the restrictions on unsolicited sales of general insurance and stronger disciplines on compliance with the General Insurance Code of Practice should improve consumer confidence in the value and utility of insurance as an important tool to protect family and business assets
Download the media release here