Australia: Parliamentary inquiry into life insurance
Source: Asia Insurance Review | Oct 2016
Australia’s parliamentary joint committee on corporations and financial services will conduct an inquiry into the life insurance industry, following a series of scandals that have rocked consumer faith in the sector.
The committee will consider whether the industry needs further reform and oversight by the corporate regulator Australian Securities & Investments Commission and the prudential regulator Australian Prudential Regulation Authority, and look at whether companies are engaging in unethical practices to avoid meeting claims, reported The Australian. The committee is expected to release its report by 30 June 2017.
The inquiry was proposed by Senator John Williams who said that the committee should pay particular attention to the life insurance policies that are taken out as part of a superannuation package. Consumers are, by law, committed to life insurance policies through their super funds, paying a collective A$6 billion (US$4.5 billion) a year in premiums.