Life insurance self-regulation is enough

Further regulation for the life insurance industry is not necessary, the Financial Services Council (FSC) believes.

Speaking at the FSC’s Life Insurance Conference this morning, the council’s chief executive, Sally Loane, said the majority of consumer concerns had been addressed or were being progressed by the industry.

“The FSC strongly believes further regulation would be unnecessary. Self-regulation is an efficient way to bring about pro-consumer changes in the sector,” Loane said.

Loane said policymakers should be careful to balance the sustainability, accessibility, and affordability of life insurance so that consumers can continue to access the cover they need now and in the future.

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“Self-regulation does work. It is more efficient, less costly and less time-consuming to reform from within than for the government to go through the lengthy consultation process of additional legislation,” she said.

Loane noted that the Government and Parliament needed to remove the barrier that prevented life insurers being able to offer targeted rehabilitation payments to facilitate recovery for sick or injured persons and a more speedy return to work.

“We need Government to act to help insurers bring older insurance portfolios in line with contemporary products. We are pleased the Government has indicated its interest in such a proposal which will help consumers enormously,” she said.