A number of bills relating to the insurance industry have lapsed following the calling of the federal election and the demise of all unpassed legislation.

With the calling of the federal election, Parliament has been prorogued and the House of Representatives dissolved.

The bills related to the Financial Accountability Regime (FAR), financial sector reform, and the Financial Services Compensation Scheme of Last Resort Levy (CSLR) for provisions and collections.

The proposed changes are recommendations from the Hayne royal commission. Consumer advocate Choice has said previously the reforms are two of the most important recommendations and it had hoped to see the bills debated and passed.

The bills were introduced in the Lower House on October 28 last year, and In February the Senate Economics Legislation Committee recommended they be passed after a public consultation that included submissions from a range of stakeholders.

The committee said the bills were vital to improving the operating culture of entities in the financial services sector and would ensure increased transparency and accountability in insurance, and improve protections and access to redress for consumers.

“The committee believes that the proposed compensation cap and levy will ensure the long-term sustainability of the scheme,” the committee said. “Importantly, it correctly balances the liabilities for industry, the provision of just compensation to claimants from scheme contributors and restoring consumer confidence in the financial services sector as a whole.”