The Council of Queensland Insurance Brokers (CQIB) has joined other industry players in opposing a recommended ban on commissions.

The Australian Competition and Consumer Commission’s (ACCC) Northern Australia Insurance Inquiry interim report says a ban on conflicted remuneration should extend to insurance, to avoid unacceptable conflicts of interest.

But the CQIB’s GM David Duncalfe says it supports the National Insurance Brokers Association (NIBA) in opposing the move.

“There is no evidence to prove that changing the remuneration basis will have a better outcome for consumers,” Mr Duncalfe told insuranceNEWS.com.au.

Many recommendations in the ACCC report overlap with territory covered at the Hayne royal commission on financial services.

NIBA CEO Dallas Booth says brokers were excluded from a ban on conflicted remuneration in financial services following a careful review, and nothing has occurred to justify a change.

The association says it will make a strong submission to the Federal Government and the ACCC, indicating there is no basis for implementing the watchdog’s recommendation.

The ACCC inquiry, announced in May 2017, is to produce a second interim report by November and a final document by November 30 next year.

The first report, released late last year, makes 15 recommendations for adoption as soon as possible, including the commission ban.

It also says stamp duties on insurance should be removed – a proposal welcomed by the industry.

“Scrapping these stamp duties would slice many hundreds of dollars off the final price customers in northern Australia pay for their insurance,” Insurance Council of Australia CEO Rob Whelan said.

The ACCC will further review 13 draft recommendations after receiving submissions that are due by April 12. It has also identified five areas for investigation this year.

The draft recommendations include that the Government consider developing a national home insurance comparison website and that states and territories introduce measures to prompt consumers to investigate insurance costs when they are considering buying real estate.

The report can be accessed here.