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.
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