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<\/a>In an update released by Treasurer, Josh Frydenberg<\/strong> at the end of last week, the Treasurer referenced Commissioner Hayne’s recommendation in his Final Report \u201c…that the Corporations Regulations be amended, so that the handling or settlement of insurance claims, or potential insurance claims, is no longer excluded from the definition of \u2018financial service.”<\/p>\n The Royal Commission’s Recommendation 4.8 reads:<\/p>\n Recommendation 4.8 \u2013 Removal of claims handling exemption<\/span><\/p>\n The handling and settlement of insurance claims, or potential insurance claims, should no longer be excluded from the definition of \u2018financial service\u2019.<\/em><\/p>\n The Treasurer’s statement said the Government recognised that inappropriate claims handling practices can cause significant consumer detriment as highlighted through the Royal Commission\u2019s round six hearings into insurance.<\/p>\n It added that regulation of insurance claims handling as a financial service under the Corporations Act will allow ASIC to enforce a higher standard of behaviour in the industry and ensure consumers can expect the same standard from insurers handling claims as they can from all financial service providers.<\/p>\n…regulation of insurance claims handling as a financial service …will allow ASIC to enforce a higher standard of behaviour<\/h6>\n