The Federal Government has announced a royal commission into the financial services industry which will touch on insurance.
Prime Minister Malcolm Turnbull announced the news this morning following a letter signed by the chairpersons and chief executives of the big four banks ANZ, Commonwealth, NAB and Westpac.
Whilst the banking sector may have spurred the decision to launch the royal commission, the insurance industry will also be included in the terms of reference, Turnbull confirmed.
"The only way we can give all Australians a greater degree of assurance is a royal commission into misconduct into the financial services industry,” Turnbull told a press conference in Canberra, the
ABC reports.
"It will cover the nation's banks, big and small, wealth managers, superannuation providers, insurance companies.
“It will be a comprehensive inquiry."
In a statement, Turnbull said that the royal commission will consider the conduct of financial services firms and will also “consider how well equipped regulators are to identify and address misconduct”.
“This will be a sensible, efficient and focussed inquiry into misconduct and practices falling below community standards and expectations,” Turnbull continued.
“Most Australians are consumers of banking and financial services, and we all have the right to be treated honestly and fairly by banking and financial services providers.
The royal commission is expected to cost $75m and will run for 12 months, with the Government set to receive a final report by February 1 2019.
Related stories:
Insurance industry told to lift its game
Brokers should remind homeowners about fire safety
.jpg)
