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Government ‘must consult with industry’ on reform

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Suncorp has urged the Federal Government not to implement Hayne royal commission reforms without first consulting the industry.

CEO Insurance Gary Dransfield says if a balanced approach is not taken, insurers could be put out of business, with communities forced to suffer the consequences.

He says criticisms in Kenneth Hayne’s final report were “at times scathing”, but the Government cannot supply all the answers.

“By working together, the industry and government can deliver a far more sustainable insurance industry, along with targeted reforms to strengthen customer protections and outcomes,” he said.

“Insurers and government need to balance any industry reforms to ensure individual customers, entire communities and taxpayers don’t suffer from insurer insolvency and collapse, which could severely hamper community disaster recovery.”

Mr Dransfield says Suncorp believes in four pillars “that underpin our industry and allow us to provide affordable and much-needed insurance protections to millions of customers each year”.

These are: a focus on customer contracts; servicing the communities in which insurers operate; providing a diversified offering to the country’s unique geographic regions; and delivering value for shareholders.

“We’d urge the incoming Government to consider the complex balancing act the insurance industry must strike,” Mr Dransfield says.