The second half of the Actuaries Institute Financial Services forum coincided with the opening of the third stanza of the Hayne royal commission into banking  misconduct - and a key theme highlighted was the need to consider community standards.One message was that the financial services industry as a whole needs to take fairness into consideration, not just remain within the law.The forum opened with speeches from the regulators, APRA and ASIC. Peter Kell, ASIC commissioner, started with a review of the current insurance and superannuation regulatory environment, holding up the life insurance sector and reforms as an example of evolution via review.Ongoing work on claims handling for TPD (total or partial disability) products for some consumers had high rates of decline. This led to joint project between APRA and ASIC to develop a consistent reporting framework. "One company had the lowest rate of claim denial, but the highest rate of claims withdrawal," Kell told the audience of actuaries and risk managers.  He said ASIC would likely be given new powers and tools, including enhanced financial product intervention powers enabling it to intervene if a product is identified as poorly designed and a risk to consumers. He said that, ideally, these powers would be broad and flexible. "With flexible power, ASIC would be able to take the least interventionist approach possible in the circumstances, rather than having to resort to a blunt wide-reaching action such as banning a product outright," he said.Kell also raised the need to cut out the blame shifting - and liability avoidance - between product manufacturers and distributors. "Responsibility lies across the supply chain," he said.Another suggestion Kell said would be helpful in assessing performance would be the collection and publication of internal dispute resolution data. He was specifically referring to the life insurance and superannuation sectors, but suggested it had application across the board for all financial services areas.  "This provides important data and feedback for all in the industry, whether in product design or claims handling," he said."This will also highlight consumer and community expectations."In the Q&A session, Kell was asked if "junk insurance" had ever - in his view - made it onto the market. Short answer was "yes, we have rated some insurance products as junk insurance," he said."When claims had payment ratios of five cents in the dollar, if that's not junk insurance, I don't know what is."This was a favourite type of product at used car dealerships. "We have achieved $120 million in remediation for consumers due to the sale of extraordinarily poor products."Kell was also asked to give an example of where a direct intervention ASIC's new powers would have been useful. Kell suggested The Cash Store, which was at the time Australia's second largest payday lender. "They were selling a whole lot of insurance to customers who were unemployed, and therefore ineligible to claim. ASIC obtained a civil penalty of $19m and the company ended up leaving Australia."