Banking Royal Commission ready to heat up for insurers

Banking Royal Commission ready to heat up for insurers | Insurance Business

Banking Royal Commission ready to heat up for insurers

Ahead of the start of hearings on the insurance industry on September 10, the Banking Royal Commission has revealed its list of case studies to be heard.

The list serves as a who’s who of the Australian insurance industry, with prominent names including AMP, Allianz, AAI (Suncorp), IAG, REST and Youi. The Code Governance Committee, Financial Services Council and Insurance Council of Australia will also provide testimony on the current state of regulatory affairs in Australia, and its appropriateness for protecting consumers into the future.

Additionally, evidence will also be provided by a number of consumers, relaying their particular experiences with the various insurers profiled.

This round of hearings will assess three categories of the Australian insurance industry – life insurance, general insurance and the regulatory regime. Disaster insurance hearings will also be held as part of this round - originally scheduled for Round 4 of the hearings in July, these hearings were delayed to the length of the farm finance case studies.

Earlier in August, a report released by KPMG indicated increased regulation around the insurance industry was likely to occur, and accordingly a rise in premiums may occur, in part due to pressure from the Royal Commission.

“We can expect increased regulatory pressure for life insurers to demonstrate that their products demonstrate true customer value and a transparent customer experience through the full-service life cycle,” said Hoa Bui, KPMG Partner, Actuarial & Financial Risk. “Compliance and remediation costs will increase in the shorter term, and companies will be expected to adapt their compliance operating models to manage costs effectively.” 

Hearings are scheduled to be held from September 10 to September 21. An interim report on the findings of this Royal Commission will be released by September 30, with the full report arriving by February 01, 2019.