Actuarial firm Finity has advised insurers against putting on hold the implementation of reform measures pushed forth by the Hayne royal commission during the coronavirus outbreak.

The advice came after the corporate and prudential regulators announced most of their planned policy and supervision initiatives have been suspended to free up resources to focus on managing potential fallout from the virus crisis.

“Clearly this is an opportunity for the regulatory teams in insurers and distributors to take a deep breath and have a look at priorities,” Finity says in a report.

“It does not mean ‘down tools’ but it does mean that people committed to these projects can be redeployed to more pressing activities if needed.”

Where vulnerable customers are concerned, it is even more critical that insurers stepped up their focus during this uncertain period, Finity says.

“If anything it makes sense to try to accelerate it. The very nature of the COVID-19 creates whole hosts of newly vulnerable customers. Even if new policies and procedures are not yet in place, actions will be judged through the lens of those expectations.

“It is hard to imagine a more serious first-up opportunity for financial institutions to demonstrate they have taken heed of the lessons delivered by Hayne than the present COVID-19 situation.”