Peter Kell, ASIC deputy chair, gave a speech recently where he said that the findings of the Royal Commission highlight just how important community expectations and standards are to the financial advice industry. Poor claims decisions, he said, are undermining public confidence in the industry.
The ASIC Regulatory Update held in Melbourne is a regular update on the Royal Commission into the finance and insurance industry. Kell reiterated that minimum compliance can sometimes usurp good outcomes for customers, thus undermining trust, with poor insurance claims outcomes a good example.
The take-home message, he said, was to ensure conduct and products take into account community expectations and fairness.
Having better claims data, which is a project in the pipeline, is important for greater transparency in insurance claims, Kell said, to establish just how everyone is performing and enhance regulatory frameworks in insurance. Being able to compare data between insurers is more important than ever so any gaps can be examined in more detail, to ensure fairness and good customer outcomes.