cars traffic lights

Insurance Regulatory Hub

The latest regulatory and legislative developments across the insurance market.

Stay up to date with regulatory reforms facing the Australian insurance industry in 2020 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. 

Our team is working with insurance businesses to navigate the changes. Get in touch to find out how we can help.

Implementation of regulatory reforms have been deferred by up to 6 months. Click here to read more.
   

Regulatory change Current status Resources
Product Design and Distribution Obligations (PDDO) The transition period has been extended until 5 October 2021.

ASIC consulted on draft regulatory guidance and consultation closed on 11 March 2020.
Read our analysis of the PDDO here.
Changes to IDR ASIC was due to implement a new RG 165 at the end of 2019. However, release of the new standards has been deferred until further notice following changes to ASIC’s regulatory priorities. Read our analysis of the proposals here.
Unfair Contract Terms regime The bill to expand the unfair contract terms regime to insurance has been passed by Parliament and the laws will commence on 5 April 2021. Read our analysis of the draft legislation here.
Claims Handling as a Financial Service Draft legislation has been released and consultation closed on 10 January 2020.

Read our analysis of the draft legislation here.

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

Hawking Prohibitions Treasury has released draft legislation to expand the current hawking prohibitions. However, ASIC has used its modification power in the interim to ban cold call sales of direct life insurance and CCI from 13 January 2020. Read ASIC’s consultation paper here.

Click here to see the draft legislation.
Deferred Sales Model for Add-On Insurance

Treasury has been consulting on a deferred sales model for add-on insurance more generally. Separately, ASIC has proposed introducing a deferred sales model for add-on insurance and warranties sold by caryard intermediaries.

The final version of the bill has not yet been released.

 
The Treasury proposals paper and submissions can be found here.

ASIC’s consultation paper in relation to add-on insurance and warranties sold by caryard intermediaries can be found here

Click here to see the draft legislation.
Cap on vehicle dealer commissions

Treasury consulted on proposed legislation to give ASIC the ability to cap commissions. 

The final version of the bill has not yet been released.

Click here to see the draft legislation.
Duty to take reasonable care not to make a misrepresentation to an insurer

Treasury consulted on proposed legislation to amend the Insurance Contracts Act 1984 (Cth) in respect of ‘consumer insurance’ contracts.

The final version of the bill has not yet been released.

Click here to see the draft legislation.
Enforceable code provisions

Treasury has consulted on the enforceability of financial services industry codes.

Draft legislation has now been released and consultation closed on 28 February 2020. 

The final version of the bill has not yet been released.

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

Read more about enforceable code provisions here.

Click here to see the draft legislation.

Limiting avoidance of life insurance contracts

Treasury has consulted on proposed amendments to s 29(3) of the Insurance Contracts Act 1984 (Cth). The proposed amendments will require insurers to show they would not have entered into a contract on any terms before they can avoid a life insurance contract.

The final version of the bill has not yet been released. 

Click here to see the draft legislation.
2020 General Insurance Code of Practice

The 2020 General Insurance Code of Practice has been released and is due to be implemented by 1 July 2021. Provisions to support customers experiencing family violence and financial hardship also commence on 1 July 2020.

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

View the new Code


Related publications

List of pages

More from our Insurance Law Tomorrow blog

List of pages