The Insurance Council of Australia (ICA) has expressed its support for the tabling of the Financial Services Royal Commission (FSRC)'s insurance legislation in the House of Representatives.
The reforms detailed in the legislation aim to change how various insurance products are offered or sold to customers.
“The Insurance Council fully supports the intention of the Hayne recommendations and recognises the importance of the legislation. Insurers have been preparing for implementation since the draft bill was released in January, and today's bill provides the details need by businesses to adjust their operations,” said ICA chief executive officer Andrew Hall.
“The ICA acknowledges that its concerns about the potential negative impact of some provisions of the original draft legislation have been considered while still being consistent with the policy intent of the FSRC recommendations. For example, there is greater clarity about how hawking prohibitions will be strengthened, and there is more certainty about the application of claims handling obligations to service providers.”
The ICA said it will work closely with the government to ensure that the reforms can be implemented effectively by insurers and improve consumer outcomes. Insurers will also continue to work with the government to strengthen community trust and the sector's structural integrity, while also working to ensure that their products fully meet community expectations.
