Category Archive: Industry

Plans unveiled for claims handling reform

The Government has released a consultation paper in response to the recommendation from the Financial Services Royal Commission that claims handling should no longer be excluded from the definition of ‘financial service’.

Continue reading »

What makes an insurance contract?

In The Owners – Units Plan No. 3115 v The Trustees of the Master Builders Fidelity Fund Scheme [2019] FCA 115, the Federal Court (Griffth J) considered, inter alia, whether fidelity certificates issued under a fidelity scheme approved pursuant to the Building Act 2004 (ACT) are contracts of insurance for the purposes of the Insurance …

Continue reading »

Stronger penalties for corporate misconduct to be introduced

The Treasury Amendment (Strengthening Corporate and Financial Sector Penalties) Bill 2018 (Bill), which introduces stronger penalties for corporate and financial sector misconduct, has been passed by the Senate. The Bill implements recommendations of the ASIC Enforcement Review Taskforce and will amend the Corporations Act, ASIC Act, National Consumer Credit Protection Act (and Credit Code) and the …

Continue reading »

ASIC focuses in on IDR processes

ASIC has released research exploring the customer experience of internal dispute resolution (IDR) procedures in the financial services sector. Financial services licensees have specific obligations around maintaining an IDR procedure.

Continue reading »

Life Insurance Code 2.0

The Financial Services Council has released a draft of the new Life Insurance Code of Practice (Code) for public consultation. This follows scrutiny of the industry, including sales and claims practices, during the round 6 hearings at the Financial Services Royal Commission. The draft Code builds on the existing code and is designed to lift …

Continue reading »

ASIC proposes updates to organisational competence requirements for advice licensees

ASIC has proposed updates to Regulatory Guide 105 Licensing: Organisational competence (RG 105) that would see advice licensees required to have a responsible manager (RM) that meets a new Option 6 knowledge and skills requirement. Consultation Paper 305, released yesterday by ASIC, includes updates designed to support the professional standards reforms, which aim to lift …

Continue reading »

New mandatory reporting requirements on life insurance claims

The Australian Prudential Regulation Authority (APRA) has released the Life Insurance Reporting Standard LRS 750 Claims and Disputes with the aim of enhancing the consistency and quality of life insurance data. The data will be published through a program established jointly last year by APRA and the Australian Securities and Investments Commission (ASIC). With the …

Continue reading »

ASIC corporate plan – what’s on the horizon for insurance

ASIC has published its Corporate Plan for 2018-2022. The plan articulates the regulatory actions ASIC proposes to take over 2018-2019.

Continue reading »

ASIC reviews insurance cover through superannuation

Following the release of its report into direct life insurance (see our blog entry on that here), ASIC has also released a report on the provision of insurance cover through superannuation (Report 591). Generally, superannuation funds offer their members one or more types of life insurance (such as life cover, TPD cover and income protection …

Continue reading »

ASIC’s review of direct life insurance – the results are in

Late last week, ASIC released Report 587 on the sale of direct life insurance, revealing that its has found that sales practices and product design are leading to poor consumer outcomes. Direct life insurance products are sold within a general advice or no advice model. Throughout 2017-18 ASIC has conducted a multi-stage review of the …

Continue reading »

Older posts «