The insurance industry continues to reward those who have recommended failed products not in the interests of the industry, Australian Prudential Regulation Authority deputy chairman Ian Laughlin said.
He told the Financial Services Council (FSC) conference in Cairns this is a distinct hurdle for the insurance industry as it tries to implement change.
"A lot of the problems we are seeing in the industry are problems that we've seen before and a lot of the solutions that we're seeing are solutions we've seen before."
"So I ask what has changed to make things different this time," Laughlin said.
The corporate regulator seconded the view from an advice perspective, saying the industry had not gone far enough.
"The industry has been grappling with the problem but I do not believe it has gone far enough, fast enough," Australian Securities and Investments Commission deputy chairman Peter Kell said.
He added the regulator is continuing to work with the industry on the issue.
