The insurance industry appears to be next in the Government’s financial services reform firing line, according to a recent statement made by Financial Services Minister, Bill Shorten.
Speaking to members of the Insurance Council of Australia (IAC) in Canberra last week, the Minister for Financial Services and Superannuation said he was looking to reintroduce into Parliament the measures contained in the Insurance Contracts Amendment Bill 2010.
The Bill, which applies to both the life and general insurance sectors, was originally tabled before Parliament in early 2010 by then Minister for Financial Service, Chris Bowen.
Included in the Bill were measures impacting the way documentation could be delivered between insurers and customers, allowing for electronic versions of materials, such as Product Disclosure Statements, to be utilised.
The Bill also proposed to:
- Expand the powers of the Australian Securities and Investments Commission (ASIC) in relation to dealing with insurance providers who breached the ‘duty of utmost good faith’, allowing the regulator to issue bans or cancel Australian Financial Services licenses where appropriate
- Change the duty of disclosure test
- Introduce new remedies for life insurers in cases of non-disclosure
The 2010 Bill was passed by the House of Representatives, but lapsed before it could be passed in the Senate, due to the timing of the federal election in August 2010.
… a number of the reforms were “long overdue”
Minister Shorten told the IAC that a number of the reforms were “long overdue” and committed to bringing the Bill back into Parliament as soon as possible.
Lets see if the government is really fair dinkum-will they clean up the real estate industry. Big money invested into real estate with projections for growth and income picked out of their left toe-with no basis. No disclosure of fees, none of the rules we live by, yet they advise on investments!!!!!!!!!!!!
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