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Contrasting Royal Commission fall-out

In Australia ASIC has called for general insurance commissions to be banned. I think this is likely to have unintended consequences. It might well kill off sales of general insurance at car-yards and over the phone, where most of the problems have been discovered. But it may also damage the business model of third-party general insurance advisers that have been the only real advocates for consumers, and quality, in a market dominated by just a couple of large companies. 

Meanwhile, back in New Zealand, the New Zealand Herald wondered whether the backlash against banks might damage the offer of services to New Zealanders. In a piece which brought the first hint of balance from mainstream media to the debate about about conduct regulation. Link.

My worry is that a financial services sector where the only advice you could get is fee-only, would leave the mass market without access to the ability to compare and consider higher quality alternatives without having to find a couple of thousand dollars. 


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