Taking action on recommendation 4.8 of the Banking, Superannuation & Financial Services Royal Commission
On 4 February 2019, the Government released its response to recommendations made by the Financial Services Royal Commission’s final report to remove the exclusion of insurance claims handling from the definition of ‘financial service’.
The Royal Commission recommended that the handling and settlement of insurance claims be included in the definition of ‘financial service’ and stated that it should not be unreasonable to ask an insurer to handle claims efficiently, honestly and fairly.
The Government is supportive of this recommendation as it will allow the Australian Securities and Investments Commission to enforce a higher standard of behaviour and ensure the consumer can expect the same standard from insurers handling claims as they can from all financial service providers.
The Government acknowledges there are industry concerns with the removal of the exemption leading to a number of unintended consequences. For example, claims handling staff may be deemed as providing personal financial advice. As such, a consultation paper follows and seeks stakeholder views on the underlying issues.
Responses to the consultation paper will assist in identifying these issues so that the Royal Commissions recommendation can be implemented without increasing regulatory complexity while ensuring insurers are subject to appropriate obligations.
You can submit responses to this consultation up until 29 March 2019.
Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
How To Respond
Address written submissions to:
Financial System Division
PARKES ACT 2600