Consumer groups have backed the Australian Competition and Consumer Commission’s (ACCC) call for an immediate end to the commission-based remuneration model for insurance brokers.

Axing commissions is one of 15 recommendations the competition watchdog has made to Canberra, aimed at easing the premium affordability problem in the north.

The recommendations are made in the ACCC’s interim price inquiry report, released in December.

In a submission on the competition watchdog’s report, the Financial Rights Legal Centre supports the ban on conflicted remuneration.

It says the Hayne royal commission’s recommendation to make broker commissions part of a wider review in 2022 should not be taken to mean the present system is problem-free.

“The same issues that are found in conflicted remuneration structures of financial advisers, front-line banking staff, mortgage brokers and all other distributors of financial services products apply to insurance brokers,” the centre’s submission says.

“The lack of any recommendation should not be read in any way as a free pass or stamp of approval.”

It says the Hayne royal commission did not investigate the issues in insurance broking due to “limited time”.

The Consumer Action Law Centre also supports a ban.

“Conflicted remuneration is a root cause of many problems exposed at the [Hayne royal commission],” its submission says.

“A blanket ban would simplify the law, reduce the risk of regulatory arbitrage and close the loopholes that have been created through industry lobbying.”