Maurice Blackburn Lawyers has called on the Federal Government to implement mandatory and enforceable codes of practice for the insurance industry.
The law firm believed the industry had failed to meet reasonable standards which now required external enforcement.
A submission had been lodged to a Treasury inquiry into the enforceability of financial services industry codes, which had outlined a need for Government-enforced mandatory codes of practice.
John Mennen, Maurice Blackburn superannuation and insurance principal, said it was well past time for mandated and enforceable codes across both the general and life insurers.
“Whilst it is always preferable to entrust an industry to properly care for its customers through self-regulation, that is a privilege that needs to be earned,” Mennen said.
“It is patently obvious to everyone – particularly in the wake of the Hayne Royal Commission – that the insurance industry has, for the time being, lost its social licence to self-regulate through codes of practice.”