As we reported recently, the Federal Government has released a ‘roadmap’ for the implementation of Royal Commission recommendations.
NIBA CEO Dallas Booth said, “With the amount of work to be done in this area, it is no surprise that the Government has taken steps to set out the program of work that will be required, and the timing of the reforms that will be introduced following the Royal Commission recommendations.”
“For insurance brokers, it is pleasing to note that the Government has confirmed the review of “conflicted remuneration” in general insurance and other sectors will take place during 2022. This is in accordance with Royal Commission recommendation 2.3. We do not yet know the terms of reference for the review, or how it will be conducted. We expect this will be revealed during 2021.”
He also confirmed that the association will be taking a number of steps to prepare for the 2022 review, starting with the Deloitte Access Economics project on the role and value of insurance broking, which is now well under way.
Other projects coming out of the Royal Commission recommendations include –
- Applying unfair contract terms provisions to insurance contracts – NIBA is finalising a submission on this topic at the moment, and legislation is expected in the Parliament this year;
- Removing the claims handling exemption for insurance – the Government is expected to consult on this process this year, with legislation to be introduced before June 2020;
- No hawking of insurance products – legislation is expected to be introduced by June 2020.
Booth said, “NIBA will be reviewing all draft legislation expected to be released by the Government for any potential impacts on insurance brokers. It is going to be a busy couple of years.”