INSURANCE COMPANIES – AUSTRALIA – REGULATION

ASIC bans life and consumer credit insurance cold calls

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Original article by James Fernyhough
The Australian Financial Review – Page: 16 : 5-Dec-19

The Australian Securities & Investments Commission will crack down on the practice of hawking in the financial services sector. Insurers will not be allowed to sell life and consumer credit insurance products via unsolicited telephone calls from 13 January. ASIC says no insurer had objected to the proposed ban during a consultation period. The Hayne royal commission had recommended a total ban on cold calling for all insurance and superannuation products.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMINSURE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SELECT AFSL

Insurers to be barred from using unfair contracts in new legislation

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Original article by James Fernyhough
The Australian Financial Review – Page: 4 : 31-Jul-19

Labor is expected to support the Coalition’s proposal to subject insurers to the same rules with regard to unfair contract terms as other financial services providers. The final report of the Hayne royal commission recommended abolishing the exemption, which arose because insurers are regulated by the Insurance Contracts Act. In contrast, rules on unfair contract terms are covered by the ASIC Act. The Australian Competition & Consumer Commission has also made a number of recommendations for changes to the regulatory regime for insurers.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Government pushes for progress on group life insurance code

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Original article by Alice Uribe
The Australian Financial Review – Page: 15 : 4-Jul-17

The Australian life insurance sector’s new code of conduct took effect in the week ending 30 June 2017. The code will be enforced by an independent committee, but it does not come under a legal or regulatory body. As yet, the code does not cover life insurance within superannuation, something that Financial Services Minister Kelly O’Dwyer wants addressed sooner than later. O’Dwyer notes that a working group had been looking at the issue for six months, but with seemingly little progress.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AIA AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, FINANCIAL SERVICES OMBUDSMAN LIMITED

Responsible insurance-sale call repeated

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Original article by Shaun Drummond
The Australian Financial Review – Page: 19 : 2-Mar-15

Financial system inquiry member Craig Dunn says Australia should not follow the European Union by introducing an individual appropriateness test for the insurance industry. He argues that such a test would result in significant costs for the industry. He says the inquiry instead favours an increased obligation on the part of product issuers and distributors to act responsibly when selling insurance products

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL SERVICES COUNCIL, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, INSURANCE COUNCIL OF AUSTRALIA LIMITED

Suncorp urges inquiry to level the playing field

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Original article by Clancy Yeates
The Australian Financial Review – Page: 27 : 30-Oct-14

Suncorp CEO Patrick Snowball believes that the Federal Government’s financial system inquiry focuses excessively on the stability of Australia’s banking system while paying little attention to competition in the sector. He said on 29 October 2014 that smaller banks are disadvantaged by the current regulations. Snowball also spoke against allowing foreign insurers to sell policies in north Queensland

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, WESTPAC BANKING CORPORATION – ASX WBC, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC