Media Release - Big insurers shouldn't use crisis as an excuse to delay key reforms

The Morrison Government must ensure large general insurers do not use COVID-19 and recent natural disasters as an excuse to delay key industry reforms that help to protect Australian consumers.

Reports that the general insurers are seeking to pause until mid-2022 the legislation changes recommended by the Hayne Royal Commission are disappointing.

Labor is concerned the insurers are putting the go-slow on these reforms that would clearly benefit consumers in need of more protection following the impacts of COVID-19, bushfires and storms.

Some of the reforms recommended by the Hayne Royal Commission, such as unfair contract rules for insurance contracts, have already been passed by the Parliament and timetables for implementation have been agreed with the industry.

These recommendations have been well-flagged and the industry should already be positioned to adapt to changes that focus on providing suitable insurance for Australians.

Important reforms that offer more protection for consumers should not be delayed. The Morrison Government has already missed commitments to pass tranches of their response to the Hayne Royal Commission by the end of 2019.

Labor is also calling for no further delays to the Australian Competition and Consumer Commission’s review of insurance in Northern Australia.

The Morrison Government must ensure the general insurance industry is doing everything it can to help protect Australian consumers in the wake of COVID-19 and recent natural disasters.

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