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Consumer Protection in Insurance Contracts: The Need for a ‘Treating Customers Fairly’ Regime Cover

Consumer Protection in Insurance Contracts: The Need for a ‘Treating Customers Fairly’ Regime

Open Access
|Jun 2023

Abstract

In light of the findings of the 2019 Australian Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, consumer protection has been highlighted as an area of particular concern, especially with respect to insurance. This article begins by exploring the current regulatory architecture for insurance consumer protection, including the recent amendments to the Insurance Contracts Act 1984 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth). Analysis of these changes indicates that there are insufficient protections for consumers, because of a lack of appropriate redress, a lack of corporate cultural change within insurance providers, and weak regulatory enforcement. An examination of the United Kingdom’s ‘treating customers fairly’ regime provides a potential solution to these problems; and which could be relatively easily applied within the Australian context. The authors conclude that the UK TCF regime would adequately address deficiencies in consumer protection in the Australian insurance market and provide better consumer outcomes in the future.

DOI: https://doi.org/10.36544/irfc.2023.8-1.4 | Journal eISSN: 2508-464X | Journal ISSN: 2508-3155
Language: English
Page range: 47 - 67
Submitted on: Dec 11, 2022
Accepted on: Feb 12, 2023
Published on: Jun 30, 2023
Published by: International Academy of Financial Consumers
In partnership with: Paradigm Publishing Services

© 2023 Andrew Schmulow, Baladev Dayaram, Sian Mullen, published by International Academy of Financial Consumers
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.