Commission structure may need Govt intervention: FMA

It and the Reserve Bank yesterday released their response to insurers’ reports on what they planned to do as a result of the regulators’ conduct and culture review of the sector.

The FMA and Reserve Bank said they were disappointed. Some work plans were not deep or broad enough, chief executive Rob Everett said, and even those that were did not make it clear they were committing the resource required to deliver effectively on them.

Between them, insurers identified at least 75,000 customer issues requiring remediation worth at least $1.4 million.

Everett said the FMA remained concerned about high upfront commissions being paid to advisers.