Wednesday, 23 January 2019
BREAKING NEWS

Peak insurance bodies appear at inquiry

The peak lobby groups for insurers face questions at the banking royal commission over the regulation of the industry, which in large part relies on it regulating itself.

Insurance Council of Australia CEO Rob Whelan will be questioned about general insurers on Friday before Financial Services Council CEO Sally Loane appears over the life insurance industry.

Consumer advocates say many of the problems with insurance are due to gaps in laws, which mean unfair contract term protections do not apply to insurance contracts and the Australian Securites and Investments Commission lacks the power to regulate insurance claims handling.

The Consumer Action Law Centre and Financial Rights Legal Centre have criticised the self-regulation of claims handling by life and general insurers through industry codes of practice.

The federal government plans to extend unfair contract term laws to cover life and general insurance.

It was consulting about removing the exemption for insurance claims handling practices from the definition of a financial service in the Corporations Act, but has put that work on hold until the end of the royal commission.

Friday marks the end of the commission’s two-week inquiry into issues with insurance.

© AAP 2018

Source: https://www.9news.com.au/national/2018/09/21/03/34/peak-insurance-bodies-appear-at-inquiry

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