The true impact on general insurance of the Hayne royal commission will not be clear “for several years”, one industry expert says.

Finity Principal Geoff Atkins believes the serious work won’t start until after the upcoming Federal election.

“Until then it looks like it will just be competing promises,” he said.

“Some of the legislation is drafted, but quite a bit is not and as ever, much will depend on how recommendations are enacted and enforced.

“It will be several years before all the implications are understood.”

Broker remuneration will come under the spotlight in a separate review scheduled for 2022, but Mr Atkins predicts the bulk of the current structure will remain.

“Personally I don’t think [insurance broker] commissions will be prohibited or disappear,” he told insuranceNEWS.com.au.

“The things that might disappear are the over-riding, volume-based kickers – deals between insurers and brokers that are beyond the business placed.

“[In terms of basic commissions] I can’t see that any other business model makes sense. The commissions are disclosed, broadly level, and a good way of remunerating brokers for the work they do.

“Small businesses want someone on their side who can place their business and give reasonable advice. They don’t want to be haggling with their broker over the fee that they need to pay.”

Mr Atkins says his “biggest frustration” is that general insurance has been “swept up” in changes aimed at other financial services.

The recommendations on hawking and duty of disclosure are good examples of this, he says.

“Both were direct responses to life insurance issues. There was no mention of general insurance until the Commissioner said ‘the products are no different, so why not just apply [the recommendations] to all'.

“Being swept up in broader issues is nothing new. But I always ask where the balance lies between consistency and being fit for purpose.

“Some of these blanket proposals are not fit for purpose.”