NIBA has publicly welcomed ASIC’s recent “Regulatory Simplification” report, which acknowledges the challenges that current regulations pose for insurance professionals.
NIBA chief executive officer Richard Klipin stated that while the industry recognises the importance of regulation in protecting clients, the increasing volume and complexity of compliance requirements are creating operational difficulties.
“We are seeing the impacts firsthand: growing complexity and rising compliance costs are creating confusion, which ultimately results in poorer outcomes for clients and their advisers as they try to navigate an increasingly maze-like system,” he said.
The issue of regulatory streamlining has gained traction within government circles.
Treasurer Jim Chalmers has directed financial services regulators to examine options for reducing unnecessary regulatory layers, making this a central topic at recent productivity roundtables.
The opposition has also indicated support for reform, with Senator Andrew Bragg’s appointment as Shadow Minister for Productivity and Deregulation reflecting bipartisan interest in a more efficient compliance framework for financial services.
NIBA is preparing to release its “Ready or Reacting” report at its 2025 convention. The publication will examine the outlook for insurance broking through 2035, identifying regulatory demands as a significant disruptor for the sector.
The report, which draws on input from brokers across Australia, highlights the cumulative effect of overlapping and prescriptive regulation as a key concern for the profession.
“Insurance brokers want to spend their time helping clients understand risk, navigate complex policies, and secure the right cover,” Klipin said.
He noted that a more streamlined regulatory environment could allow brokers to focus more on client needs.
Klipin also noted that the current convergence of interest from regulators, policymakers, and the insurance sector presents a distinct opportunity for change.
“Brokers need a framework that delivers good consumer outcomes while empowering them to focus on what they do best: delivering expert advice and tailored solutions to businesses and households across Australia,” he said.
ASIC has initiated a series of measures aimed at reducing regulatory complexity.
Since the start of the year, the regulator has removed more than 9,000 pages of guidance and documentation as part of its simplification program.
ASIC chair Joe Longo said these actions are a direct response to feedback from industry participants, consumer groups, and other stakeholders.
“Regulatory complexity raises costs, stifles innovation, and makes compliance harder,” he said.
The regulator’s efforts include consolidating legislative instruments, withdrawing outdated regulatory guides, and modernising the way regulated entities interact with ASIC.
The agency has launched pilot programs to help small business directors and financial advisers better understand their obligations, and is transitioning to digital processes, such as email lodgement and electronic signatures for all forms by October 2025.
ASIC is also participating in law reform discussions with Treasury, focusing on areas where further simplification may be possible.
The regulator has called for additional feedback from industry stakeholders to identify further opportunities to reduce regulatory complexity.
