New Parliamentary Inquiry on life insurance

The Senate has asked the Parliamentary Joint Committee on Corporations and Financial Services to conduct an inquiry on “the need for further reform and improved oversight of the life insurance industry”. The inquiry will report by 30 June 2017.

The inquiry will be asked to assess the “relative benefits and risks to consumers of the different elements of the life insurance market, being direct insurance, group insurance and retail advised insurance”. The inquiry will also look into “whether entities are engaging in unethical practices to avoid meeting claims”.

Of particular interest to life risk brokers will be an examination of “the sales practices of life insurers and brokers, including the use of Approved Product Lists”.

Finally, the roles of ASIC and APRA will also be examined.

NIBA is currently examining the terms of reference with a view to developing a submission which will explain the important role and value of life risk brokers.

Members who have comments on these matters should refer them to NIBA CEO Dallas Booth at dbooth@niba.com.au.