The National Insurance Brokers Association (NIBA) has criticised regulatory reviews that have a detrimental effect on general insurance brokers, despite being focused on banks or the life insurance industry.

In a submission to the Senate inquiry into consumer protection in the banking, insurance and financial sector, NIBA warns against an approach that sees brokers “tarred with the same brush” as other segments.

“NIBA believes it is important, in developing any legislation and reform proposals, to consider up front whether there is any detriment that needs addressing, rather than catching all and after the fact seeking to carve out those who are, in reality, not the focus of the change,” the submission says.

It calls for a more specific focus, and adherence to key principles on regulatory intervention as set out by the OECD, Council of Australian Governments and Productivity Commission.

“The ‘one size fits all’ approach has resulted in regulations designed for one sector being applied inappropriately in other areas, where there were no issues or concerns in the first place,” NIBA says.

“Ultimately, we should all reasonably expect of the Government and regulators that if a problem is identified, the problem should be fixed in a reasonable manner, having regard to the relevant circumstances.

“NIBA has noticed a possible trend developing in some reviews conducted by government and regulators that does not appear to be conducive to the above result.”

The submission says Australia has been well served by general insurance brokers, and current law adequately protects consumers.

The Insurance Council of Australia’s (ICA) submission backs NIBA’s message, saying any problems are already being dealt with.

“ICA submits that in assessing the adequacy of the consumer protection regime for general insurance policyholders, the focus must be on identifying whether there are examples of poor consumer outcomes that remain without a remedy.

“ICA is not aware of any issues that are not being actively addressed.”