NEWS / Representation
WE ARE YOUR VOICE!
There is a lot happening at the present time. The following are a few key developments that insurance brokers need to be aware of.
Emergency services funding in New South Wales and Tasmania
Brokers with clients in NSW or Tasmania are encouraged to visit the Emergency Services Funding page on the new-look NIBA website. There, members can find a range of materials, including an ESL fact sheet that brokers can provide to their clients and a template letter brokers and their clients can send to their local state MPs, calling for the abolition of insurancebased taxes and a more equitable system for the funding of state fire and emergency services. NIBA encourages members to share these resources with their clients.
Northern Australia Reinsurance Pool
NIBA remains heavily engaged with both Treasury and the Australian Reinsurance Pool Corporation in relation to the proposed Northern Australia Reinsurance Pool. NIBA previously provided a submission to the Treasury discussion paper on the proposed reinsurance pool. In the submission, NIBA raised a number of concerns including that projected savings to homeowners would likely not be enough to address significant disparity in premiums and would do little to increase affordability. NIBA also called for the design process to focus on increasing insurer activity in the region to promote competition and innovation. Treasury has appointed an Expert Advisory Panel which will assist the Treasury Taskforce in the development and implementation of the reinsurance pool. This panel includes representatives from the General and Intermediated Insurance industries. NIBA can confirm that CEO Dallas Booth has been invited to join the panel.
COVID-19 Business Interruption claims Last month NIBA met with members of the Insurance Council of Australia (ICA), the
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Australian Financial Complaints Authority (AFCA) and the Australian Securities and Investments Commission (ASIC) to discuss the second Business Interruption (BI) test case and next steps after special leave to appeal the decision of the first test case was denied by the High Court. Following the meeting, a BI Working Group has been formed to consider ways of streamlining BI claims and BI complaints to AFCA. As part of the working group, NIBA will continue to work closely with ICA to promote an industrywide approach to COVID-19 BI claims.
Royal Commission legislation
NIBA continues to engage with ASIC and Treasury on a number of outstanding issues relating to the Royal Commission reforms, including breach reporting obligations, anti-hawking and Design and Distribution Obligations, all of which will commence in October 2021. NIBA has previously provided members with guidance on a number of Royal Commission reforms scheduled to commence later this year, with more guidance expected to be released shortly pending the outcome of these discussions. Members can access materials outlining these reforms and actions they will need to take to remain compliant on the NIBA website media hub.
Australian Law Reform Commission – Financial Services Inquiry Last month, the Australian Law Reform Commission released the first background paper as part of its inquiry into the
legislative framework for corporations and financial services regulation. NIBA has previously engaged with the Commission to provide its views on the unnecessary complexity of financial services regulation and the failings of a one-size fits all approach. The inquiry aims to: • ensure that Australia’s Corporate and Financial legal framework supports a productive and agile financial services sector while protecting consumers; • reduce unnecessary complexity, including overlapping, inconsistent, and overly prescriptive rules, making legislation more navigable and easier to understand; • create a technology-neutral, manageable regulatory framework for regulators and government agencies to administer, and for industry to implement and comply with, efficiently and effectively. The inquiry will provide its first interim report to Treasury by 30 November 2021, with further reports due over the next two years.
The role and value of insurance brokers
NIBA continues to meet with State and Federal MPs, Ministers and business and consumer groups to promote the Deloitte report on the Economic Value of Insurance Broking and the value of brokers more broadly ahead of the 2022 review into the intermediated insurance industry. NIBA is preparing for the review, and we look forward to sharing more information with you at the 2021 NIBA Convention.
CONTACT NIBA
As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Dallas Booth at: dbooth@niba.com.au
