Implications of the election results for insurance broking

NIBA welcomes the conclusion of the 2016 federal election and the return of the Coalition Government. We expect the Federal Government will proceed with its previously outlined reform agenda for financial services and advice.  NIBA looks forward to ongoing consultations with the Government on the wide range of proposals, and our aim will be, to the best we can, make sure the proposed financial reforms do not adversely affect brokers or their clients.

Dallas Booth, CEO of NIBA said “In today’s globalised unpredictable market, insurance brokers are an invaluable assistance in delivering quality outcomes for the risk and insurance needs of their clients.  Despite all the change, disruption and uncertainty, brokers provide strong and professional advice and support to their clients, and businesses will need that advice and support as they face the challenges of the Australian economy.”

The reform agenda includes proposals that could affect brokers like industry funding for ASIC, increased regulatory powers and new rules that were recommended by the Financial System Inquiry around obligations to consumers. Legislation to regulate life insurance commissions will also be re-introduced into Parliament.

“We expect to be very busy for the next couple of years.  The Government is likely to table draft legislation over the next three months in these core areas and we will work hard to ensure these reforms do not adversely affect brokers and their clients.” Mr Booth said.

There is still uncertainty on the exact nature of the reforms and we are waiting for the Prime Minister to announce the Minister who will be driving the financial services reform agenda, but NIBA looks forward to working with the Government and the relevant ministers to prioritise matters that are important to insurance brokers.