The Commissioner, the Honourable Kenneth Hayne AC QC, submitted his Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry on 1 February 2019.
ICA supports the Hayne recommendations
The Insurance Council fully supports the intention of the Hayne recommendations and recognises the importance of the legislations to implement those recommendations.
In response to the recommendations
In December 2020, the ICA welcomed the passage of the Financial Sector Reform (Hayne Royal Commission Response) Bill through Federal Parliament.
This Bill followed consultation from the Insurance Council and its members with the Government on the implementation of the Royal Commission recommendations relating to general insurance.
The Insurance Council noted that its concerns about the potential negative impact of some provisions of the original draft legislation, were considered while still being consistent with the policy intent of the Financial Services Regulatory Commission recommendations. This ensured that there was greater clarity about:
- how hawking prohibitions will be strengthened, and
- the application of claims handling obligations to service providers.
Working collaboratively with Government
Going forward, Australian insurers are continuing to work collaboratively with the Government to strengthen community trust and confidence and structural integrity of the industry and ensure that insurance products fully meet community expectations.