Mr Lonsdale clearly articulated the difference between compliance with black letter law and consumer fairness.
“So my challenge to the general insurance industry is to show greater leadership in responding to concerns about products or services, rather than being dragged into action by regulators, politicians or Royal Commissions. This means being prepared to go beyond just legal or regulatory compliance. The ICA and a strengthened Code of Practice can assist, but ultimately individual companies must make conscious decisions to do the right thing, even when not strictly required by law. Companies across the financial sector face this same challenge. Selling policies to customers who are ineligible to claim on them, charging fees for no service, or relying on outdated medical definitions can all deliver higher short-term profits. But as the financial sector cleans up in the wake of the Royal Commission, it should be in no doubt that there’s always a price to be paid in the end.”
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