Banks inquiry turns to general insurance


The banking royal commission shifts its focus to the general insurance industry this week, examining issues with travel insurance, products sold through car dealers and people’s experiences after natural disasters.

The royal commission devoted last week to issues with life insurance and will finish its examination of issues connected to insurance provided through superannuation on Monday.

The bulk of the second week of its insurance hearing will be focused on general insurance, which can include cars, homes, travel and various consumer credit policies.

It will include looking at case studies about natural disaster insurance that were dropped from the royal commission’s June sitting into farming finance and financial issues affecting indigenous Australians because of time constraints.

The commission will also look at issues involving add-on insurance sold through car dealerships and travel insurance.

Add-on insurance products are designed to protect people if they become unable to meet repayments but consumer groups label them junk insurance that often provides little or no benefit.

The first order of business for the inquiry on Monday will be to finish examining issues with the insurance provided through superannuation, with super fund REST’s insurance service delivery manager Lachlan Ross completing his evidence.

AMP’s chief customer officer and group executive of wealth solutions Paul Sainsbury will also be questioned on the superannuation insurance issues.

The focus then shifts to general insurance, with two senior managers from Allianz scheduled to give evidence.

© AAP 2018


Leave A Reply