News Regulations29 Aug 2018

Australia:Major insurers to appear before royal commission

| 29 Aug 2018

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry will hold its new round of public hearings on 10-21 September that will involve insurers.

The Commission says in a statement that the sixth round of public hearings will consider issues associated with the sale and design of life insurance and general insurance products, the handling of claims under life insurance and general insurance policies, and the administration of life insurance by superannuation trustees. The hearings will also consider the appropriateness of the current regulatory regime for the insurance industry.

The insurers and other organisations to appear before the Commission are:

  Topic Case Studies
1 Life insurance
  • AMP

  • ClearView

  • CommInsure

  • Freedom Insurance

2 General insurance
  • AAI (Suncorp)

  • Allianz

  • IAG

  • Youi

3 Regulatory regime
  • Code Governance Committee

  • Financial Services Council

  • Insurance Council of Australia

 

The Commission was announced in November 2017 by then-Prime Minister Malcolm Turnbull and then-treasurer Scott Morrison. Hearings started in March 2018. Rounds 1-5 covered consumer lending practices, financial advice, loans to small and medium enterprises, farm finance for remote and regional communities, and superannuation.

The hearings have so far uncovered several malpractices, including banks and other service providers charging advice fees to the estates of dead superannuation members; charging customers fees despite providing no services; inappropriate advice which had been costly for customers, forged signatures, and failure to take action against advisors who provided bad information.

The final report of the Commission is scheduled to be submitted early next year.

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