The Department of Treasury has released its submission to the Financial Systems Inquiry. The 90 page submission concludes that the financial system has performed well since the Wallis inquiry but there is room for the system to better position itself for the structural changes that Australia is facing. There is a focus on the ageing population and the need to meet retirees’ needs. The Treasury submits there is no need for fundamental regulatory reforms but ‘some improvements at the margin would foster greater competitiveness across the financial system without endangering stability.’
The submission includes separate sections for sectoral specific issues. In the insurance section it identifies the division between life insurance and general insurance. One of the key points is the favourable trend of the general insurance market pricing idiosyncratic risks more accurately with a focus on detailed analysis of risks particularly around natural disasters.
To see the full version of the submission, click here.