Industry should unite in face of regulatory challenges

Industry should unite in face of regulatory challenges | Insurance Business

Industry should unite in face of regulatory challenges
A shifting regulatory focus at home and rising geopolitical concerns will be among the biggest challenges facing the industry in 2018, an expert has said.

Chris Mackinnon, Lloyd’s general representative in Australia, told Insurance Business that the industry must meet changing regulatory challenges with confidence as it looks to outperform other areas of the financial sector.

“These things all add to uncertainty and complexity and cost and administrative burden for the insurance industry,” Mackinnon said. “I think while this is all very daunting, the one thing that we as an industry have got to remember is that, as a general rule, we’re very good at this stuff.”

With a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry announced at the end of last year, the insurance industry is acutely aware of the impact regulatory changes can have, and while brokers have been told not to be overly concerned about the Royal Commission, Mackinnon said that it is vital for the industry to come together.

“We’ve got to work together, we’ve got to be collaborative on how we address potential government intervention and oversight and Royal Commissions to make sure that we all sing from the same song sheet and we don’t try to dob each other in across the sector, whether it’s brokers, underwriters, underwriting agencies,” Mackinnon continued.

“We’re a well-regulated, well-structured and generally very well-behaved industry sector, compared to others, and we should hold our heads up high and make sure that we plan well in advance for these kinds of things, particularly things like a Royal Commission, but also then work together across the industry to make sure that we put our best foot forward.”

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