Insurers and brokers have called on the Government to rethink its approach to industry reform.

The Insurance Council of Australia (ICA) has told a parliamentary inquiry into business investment that Canberra should work more collaboratively with industry to identify effective solutions to issues.

And National Insurance Brokers Association CEO Dallas Booth says the Government needs to step away from “thought bubble reform”, examine the substance of industry issues and come up with solutions if they are valid.

Canberra has mandated minimum education requirements for financial planners in response to instances of poor advice, but no one has asked if that will stop the problem, he says.

“That’s an example of where the solution doesn’t necessarily address the problem,” he told insuranceNEWS.com.au.

ICA’s submission says the process for policy reform is not always conducive to effective or efficient policymaking. And the Government’s method of estimating the cost of regulatory proposals underestimates the impact because it envisages only minor amendments.

See ANALYSIS.