The Royal Commission is likely to have a profound effect on the financial services industry and although general insurance did not dominate the recommendations, it will certainly be affected.
Finity's Royal Commission Response (RCR) initiative delves into the recommendations and impact on our industry, and in this email we begin to share these insights with our friends and clients.
For starters, there are 16 recommendations potentially relevant to general insurance, and we have grouped them into five themes.
Recommendations relevant to GI
We are now in the process of analysing and considering this list of recommendations. We will create a section for RCR on finity.com.au and publish each update when released. Early focus areas are the duty of disclosure, claims as a financial service and no hawking.
What does it mean for...
A second dimension will be to segment the findings and analyse the impact by:
- product sector - personal lines, commercial lines...
- type of entity - insurers, underwriting agencies, TPAs...
- job function - underwriting, claims, CRO, Board
In our Optima publication and presentations last year we talked about the emerging regulatory landscape. The analysis proved to be reasonably accurate.
The changes at both APRA and ASIC will clearly have a big influence on the regulatory landscape. Insurers and other financial services entities (MGAs, outsourced claims managers) will need to adapt to different tones and interactions.
APRA's update this Monday shows it intends to implement all relevant recommendations as quickly as possible, while noting additional resources will be required in some cases.
Now is the ideal time to update (or create) your map of the regulatory landscape relevant to your company. Not only does such a map lead into the detailed planning of any actions needed, it can help generate confidence in the future of the organisation.
Don't forget, while both major parties have largely agreed to adopt all RCR recommendations, some will require legislative amendment and further consultations with the industry.
How Finity could help you
If you'd like to talk directly about your situation and whether we might be able to help, call your Finity contact or one of the authors below.
You'll continue to receive updates from the Finity RCR Initiative for upcoming insights, unless your tell us otherwise. Additionally, if you would like to add others to the distribution, please let us know.
Are there specific topics or questions you think we should tackle in our RCR initiative? Are there any groups you think would benefit from a 'What does it mean for...'?
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