Government calls for reform to Add On Insurance ·

Government calls for reform to Add On Insurance

The Australian Government via the Federal Treasury issued a Proposal Paper on the 9th September, calling for submissions from interested parties in relation to the selling arrangements for Add-On Insurance following the Hayne Report recommendations. Travel Insurance is the largest form of Add-On insurance in the Australian economy and as such may be impacted by the reforms being considered.

To address these concerns, AFTA has prepared a detailed submission.

Click to read AFTA’s submission HERE

“Travel agents have been supporting consumers and the Australian travelling public with appropriate and fit for trip travel insurance for decades, and AFTA has demonstrated with facts how this continued process is critical to ensuring consumers depart Australia with the right travel insurance for their trip,” said Jayson Westbury, AFTA Chief Executive.

“While AFTA and the travel industry support reforms by the government in line with those recommended by the Hayne report, in some cases and we believe in the case of travel insurance, an exemption to a deferred sales model is in the public’s interest and in this case the nations interest to ensure that consumers get a good deal and the right travel insurance product for their trip,” said Westbury.

“The good thing about the Treasury’s Proposal Paper is that they have given industry a clear pathway of consultation and we thank them and acknowledge them for this,” Westbury said.

A process will now continue over the coming months at which time clearer indications as to how the Government may apply the reforms, and AFTA will continue on the path of engagement during this time.

 

Source: Read Full Article