cars traffic lights

Insurance Regulatory Hub

The latest regulatory and legislative developments across the insurance market.

Stay up to date with our latest thought leadership on changes affecting the Australian insurance industry in 2022 with our Insurance Regulatory Hub.  We’ll be updating this page with the latest regulatory news affecting insurers, reinsurers, underwriting agencies, coverholders, brokers and third party claims administrators. 

Regulatory change Current status Resources
Financial Accountability Regime 

The Financial Accountability Regime Bill was introduced into Parliament on 28 October 2021.

 Read our update here.
Product Design and Distribution Obligations (PDDO)

Commenced

The PDDO is now in effect for affected products.

ASIC has released Regulatory Guide 274 (Product Design and Distribution Obligations) setting out its guidance on the PDDO.

Read our analysis of the PDDO here.

See the new RG 274.

See our 5 October update.

Changes to IDR

Commenced

Regulatory Guide 271 (Internal Dispute Resolution).

Read our analysis of the proposals here.

See the new RG 271.

See our 5 October update.

New breach reporting requirements

Commenced

New breach reporting obligations have now commenced and ASIC has issued guidance on the new obligations under Regulatory Guide 78.

 See the new RG78.

See our 5 October update.

Unfair Contract Terms regime

Commenced

The unfair contract terms laws were extended to insurance contracts on 5 April 2021.

Read our analysis of the legislation here.
Claims Handling as a Financial Service

Commenced

This reform commenced on 1 January 2021 following the passage of the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

A transition period applies. To benefit from the transition period, AFSL applications must have been submitted to ASIC by 30 June 2021.

Read our analysis of the bill here.

Listen to the webinar where we speak with John Anning from the Insurance Council of Australia here.

Hawking Prohibitions

ASIC used its modification power to ban cold call sales of direct life insurance and CCI from 13 January 2020.

The broader hawking prohibitions were introduced on 1 January 2021 following the passage of the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

The prohibitions commence on 5 October 2021.

Read our analysis of the bill here.

See our 5 October update.

Deferred Sales Model for Add-On Insurance

Commenced

This reform was introduced on 1 January 2021 following the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

The deferred sales model commenced on 5 October 2021.

Separately, ASIC consulted industry in October 2019 and August 2020 on its proposed use of its product intervention power to introduce a deferred sales model for add-on insurance sold by caryard intermediaries. 

Read our latest update on the deferred sales model and exemptions.

See our 5 October update.

Cap on vehicle dealer commissions

Commenced

This reform commenced on 1 January 2021 following the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

Read our analysis of the bill here.
Duty to take reasonable care not to make a misrepresentation to an insurer

Commenced

This reform was introduced on 1 January 2021 following the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

The new duty applies to insurance contracts entered into on or after 5 October 2021.

Read our analysis of the bill here.

See our 5 October update.

Enforceable code provisions

Commenced

This reform was introduced on 1 January 2021 following the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

ASIC has not yet designated any enforceable code provisions for insurance.

Read our analysis of the bill here.

Listen to the webinar where we speak with John Price, Lead Ombudsman for General Insurance Decisions at AFCA here.

Limiting avoidance of life insurance contracts

Commenced

This reform commenced on 1 January 2021 following the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (Cth).

Read our analysis of the bill here.
2020 General Insurance Code of Practice

Commenced

The 2020 General Insurance Code of Practice commenced on 1 July 2021. Provisions to support customers experiencing family violence and financial hardship commenced on 1 July 2020.

Read our analysis about the new provisions and revised implementation dates here.

View the new Code.


Related content

List of pages