Hayne’s Report does not provide a complete list of actions to identify, prevent or manage any misconduct or conduct fails to meet community expectations.
It does however set a roadmap for future change.
This Deloitte whitepaper sets out actions to be taken by the financial services sector (insurance pages 13-15) in light of the Hayne Royal Commission.
The 15 recommendations Commissioner Hayne made specifically for the insurance industry cover a number of industry issues already known to the sector.
They include introducing a cap on the amount of motor dealer commissions, a deferred sales model for add-on insurance, and a possible reduction in life risk insurance commissions.
There are also a number of additional recommendations that will both directly and indirectly affect insurers.
Implementing these will most certainly impact the end-to-end insurance value chain. So much so that they may well require redesigning products, systems, processes, and controls.
This does not necessarily mean going back to the drawing board, but they will result in a huge amount of operational change and increased administrative burden.
Get the thoughts on this from Deloitte insurance experts:
- Max Murray, Partner, Insurance, Regulated Institutions Audit leader
- Karen Den-Toll, Partner, Governance, Regulation and Conduct, BEAR, Customer Advocacy, joint Corporate Governance leader
- Ashika Reddy, Director, Governance, Regulation and Conduct
- Sophie Cusition, Director, Governance, Regulation and Conduct