The insurance industry has used the one-year anniversary of the HIH Royal Commission report as a reason to confront federal and state governments’ slow reactions on implementing commissioner Justice Neville Owen’s recommendations.

The Insurance Council of Australia (ICA) says while some recommendations, including the restructure of the Australian Prudential Regulation Authority (APRA), have been taken on board, “key recommendations” including the regulation of unauthorised foreign insurers, a policyholder protection scheme and tax relief remain unchanged.

ICA Executive Director Alan Mason says while Federal Treasurer Peter Costello commissioned a study into financial system guarantees and a review into the use of UFIs and discretionary mutual funds last year, the findings have not yet been released.  

Last month a Treasury Department spokesman told Sunrise Exchange News that the latter report ­­– which was due in January ­– has been completed but the department is waiting on the report into financial system guarantees to be finalised so it can release the findings together.  

Once again pushing his point that the recommendations should be recognised as “an entire package” rather than separate points, Mr Mason says unless the Federal Government moves faster the royal commission’s full benefits won’t be recognised.   

“Unless all entities carrying on insurance business in Australia are subject to the same regulations and requirements of financial security as APRA authorised insurers, the benefits of the royal commission recommendation package, including consumer protection, will not be realised,” he said.

The National Insurance Brokers Association (NIBA) has also been particularly vocal about dealing with UFIs, recommending the disclosure provisions of the old legislation ­– which protected brokers who arranged contracts with UFIs – be continued under the Financial Services Reform Act.

“NIBA also recommended that the Australian Securities and Investments Commission monitors the activities of those who represent UFIs in Australia so as to ensure that they meet acceptable standards,” NIBA CEO Noel Pettersen said.