Australia unlikely to follow UK commission disclosure push
Mandatory commission disclosure being considered by the UK’s Financial Services Authority (FSA) is unlikely to be followed by Australian regulators.
NIBA CEO Noel Pettersen told InsuranceNEWS.com.au it’s “neither likely nor necessary” that mandatory disclosure would be introduced in Australia.
The FSA is considering forcing brokers to disclose their commission as it seeks a more transparent commercial insurance market.
In March the regulator published a discussion paper on issues relating to intermediary disclosure, proposing to tighten the current regime.
Director of Retail Policy Dan Waters said it’s important that insurance buyers “know what they’re paying for when they use an intermediary. We remain concerned that for some buyers of commercial insurance this is not the case.”
The FSA says there is an “increased blurring” of the distinction between insurers and intermediaries and is investigating related conflicts of interest. It will consult on any new rule proposals in the final quarter.
NIBA CEO Noel Pettersen told InsuranceNEWS.com.au it’s “neither likely nor necessary” that mandatory disclosure would be introduced in Australia.
The FSA is considering forcing brokers to disclose their commission as it seeks a more transparent commercial insurance market.
In March the regulator published a discussion paper on issues relating to intermediary disclosure, proposing to tighten the current regime.
Director of Retail Policy Dan Waters said it’s important that insurance buyers “know what they’re paying for when they use an intermediary. We remain concerned that for some buyers of commercial insurance this is not the case.”
The FSA says there is an “increased blurring” of the distinction between insurers and intermediaries and is investigating related conflicts of interest. It will consult on any new rule proposals in the final quarter.