Treasurer Scott Morrison announced that he has directed the Productivity Commission to conduct an inquiry into competition in Australia’s financial system, with a report expected on:

  • the need for further reform and improved oversight of the life insurance industry;
  • assessment of relative benefits and risks to consumers of the different elements of the life insurance market, being direct insurance, group insurance and retail advised insurance;
  • whether entities are engaging in unethical practices to avoid meeting claims;
  • the sales practices of life insurers and brokers, including the use of Approved Product Lists;
  • the effectiveness of internal dispute resolution in life insurance;
  • the roles of the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority in reform and oversight of the industry; and
  • any related matters.

The Productivity Commission released a consultation paper on 6 July 2017.

Initial submissions are due by 15 September 2017, with a draft report due in early 2018 and a final report due in July 2018.

For a full summary of the issues, email us a request at [email protected]


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