The insurance sector has come out of the Hayne royal commission with a less tarnished image than the banks or wealth advisers, but some sources of easy commissions will be crimped.
Hayne, in recommendation 2.5 on "Life risk insurance commissions", suggests ASIC should consider further reducing the cap on commissions for these types of insurance products.
"Unless there is a clear justification for retaining those commissions, the cap should ultimately be reduced to zero," Hayne said.
He was also inclined to question the ongoing justification for continuing with exceptions to the ban on conflicted remuneration for general insurance products, consumer credit insurance products and non-monetary benefits.
Add-on insurance, another niche product within the insurance sector, received a roasting from Hayne, who suggested that ASIC should impose a cap on the amount of commission that may be paid to vehicle dealers in relation to the sale of add-on insurance products.
He also wanted to see a Treasury-led working group "develop an industry-wide deferred sales model for the sale of any add-on insurance products (except policies of comprehensive motor insurance).
"The model should be implemented as soon as is reasonably practicable," he said.
At the conclusion of the Royal Commission, Insurance Council of Australia CEO Rob Whelan said: "Several recommendations, including those relating to add-on insurance and unfair contract terms, are already being addressed by the industry and ASIC.
"The ICA also supports removing the exemption of the handling and settlement of insurance claims from the definition of a financial service. It looks forward to further consultation on the design and implementation of this and other recommendations."
Whelan's positive tone was not replicated across the sector, with signs of stout resistance to change already emerging.
Eugene Ardino, chief executive officer of Lifespan Financial Planning, one of the country's largest privately owned adviser networks, warned: "Removal of insurance commissions will have negative social impact. It is wrong and irresponsible to make changes to insurance that are likely to lead to a reduction in the level of insurance protection cover in Australia."
"If the cost of accessing insurance goes up, coverage will go down. Furthermore, it is difficult enough to get consumers to pay for insurance, let alone convince them that they should pay for advice on insurance and then pay for the actual insurance. This is evidenced by the approximately A$2 trillion under-insurance problem in Australia," Ardino said.