The general insurance industry is likely to face another inquiry under the new Coalition Federal Government, which was elected at the weekend.

Treasurer-elect Joe Hockey says he wants a “son of Wallis, root-and-branch inquiry” into the financial services sector.  

Changes to the Future of Financial Advice (FOFA) reforms will be largely directed at the financial advice industry.

Mr Hockey told the Queensland Media Club in July that he wants “a high-level review of the overall financial system”.

“What I have in mind is a wide-perspective look at where we want the financial system to be during the next decade and the steps we will need to get there.”

Mr Hockey says establishing the inquiry’s terms will be a priority, with a chairman to be announced at the same time.

He has promised to consult with the sector on the terms.

The inquiry “should be embraced as laying out a roadmap for the future development of the financial sector”, Mr Hockey says.

Promised changes to FOFA will follow big-ticket commitments such as scrapping the carbon and mining taxes.

Last month, then shadow financial services minister Mathias Cormann told the Financial Services Council conference what was in store.

“These changes will include the removal of opt-in, the simplification and streamlining of the additional annual fee disclosure requirements, improving the best-interests duty, providing certainty around the provision and availability of scaled advice and fixing the ban of commissions on risk insurance inside super,” he said.

Senator Cormann says the legislation is drafted and has cabinet approval.

If the Coalition Government introduces FOFA legislation before next July – when the composition of the Senate changes – it is not known if the Greens will support it. The party sided with Labor when FOFA bills passed previously.

Senator Cormann has been learning how the insurance industry works, offering hope that he will tackle problems faced by brokers, advisers and insurers.

The insurance industry could also find itself dealing with Andrew Robb, previously the shadow minister for finance, deregulation and debt reduction.

Depending on Senate votes, Arthur Sinodinos may also be involved in financial services deregulation, although in the past he has focused more on other industries.

The Insurance Council of Australia has welcomed the election result, with CEO Rob Whelan saying the insurance industry “is encouraged by the Coalition’s belief that excessive regulation stymies innovation, investment and more employment”.

ICA hopes the Government will “renew the tax reform process, to reduce state and territory government reliance on stamp duties on insurance products”.

However, such a move does not seem to appear in any Coalition policy documents.