A year after the Royal Commission report was submitted, claims handling has emerged in its wake as one of the biggest issues for the insurance industry.
The Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (the Act) was given assent on 17 December 2020. Schedule 4 of the Act which has the effect of making handling and settling a claim a financial service under the Corporations Act 2001 (Corporations Act) will commence on 1 January 2021. As a consequence, insurers will face higher compliance costs and a more assertive regulator in 2021.
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