Brought to you by:
Vero
Vero

AFCA consults on naming and shaming

Facebook Twitter LinkedIn Google

The Australian Financial Complaints Authority (AFCA) will “run a limited consultation” with stakeholders on its plan to reveal the names of businesses involved in consumer disputes.

The authority announced the policy, which will start on July 1, last week.

“AFCA is committed to creating transparency within the financial sector to rebuild trust and meet community expectations,” a spokesman told insuranceNEWS.com.au today.

“Currently, the outcomes of these decisions are published on the AFCA website without the name of the financial firm listed.

“AFCA will be changing the AFCA rules to enable us to do this. We will run a limited consultation with stakeholders regarding the required changes.”

Consumer advocates have applauded the move, but the Insurance Council of Australia is concerned insurers, particularly those with significant market share, may be unfairly affected.

“Naming insurers without context risks creating unjustified reputational damage,” ICA spokesman Campbell Fuller told insuranceNEWS.com.au.

“For example, publishing the raw number of disputes involving each business would not take into account the fact large businesses are likely to receive more complaints. Insurers that specialise in mass-market products may also receive more disputes.”

ICA has called for more consultation with AFCA on the new rule.