(Re)Insurance and Regulation Focus - fortnight commencing 16 February 2026
18 February 2026
Key developments in the last fortnight
Australian funds investment specialist ordered to pay $2.5 million over cyber security failures
ASIC has secured a $2.5 million Federal Court penalty against an Australian funds investment specialist firm for prolonged failings in cyber security that exacerbated a 2023 data breach resulting in the exposure of sensitive personal information of around 18,000 clients. The firm admitted it did not meet its Australian Financial Services licence obligations, including failing to invest adequately in cyber risk management and controls. The Court also ordered the firm to pay $500,000 towards ASIC’s costs and to undertake an independent compliance program to strengthen its cyber resilience. This landmark enforcement underscores that cyber security is a core regulatory expectation, not just an operational issue.
Australian funds investment specialist ordered to pay $2.5 million over cyber security failures
ASIC urges super trustees to step up and address serious gaps in anti-scam and fraud protections
ASIC’s recent review of anti-scam and fraud content across 47 superannuation fund websites revealed significant gaps in clarity, accessibility and actionable guidance for members, compared with benchmarks from major banks. The findings show that many funds lack prominent, high-quality information and dedicated reporting channels, exposing members to rising scam risks, with $22 million lost to super-related scams in 2025. ASIC Commissioner Simone Constant has called on trustees to urgently enhance their prevention, detection and response practices to better protect member savings. Trustees are encouraged to adopt baseline measures from ASIC’s reports and engage with emerging frameworks like the National Scams Prevention Framework.
ASIC urges super trustees to step up and address serious gaps in anti-scam and fraud protections
APRA grants new general insurance licence to AmTrust Specialty Limited
APRA has granted AmTrust Specialty Limited (AmTrust) a licence to operate as a general insurer under the Insurance Act, marking a new entrant in Australia’s prudentially regulated insurance sector. AmTrust will underwrite legal expenses insurance, initially concentrating on After the Event (ATE) and Before the Event (BTE) products. The covers are intended for individuals and organisations that may be reluctant to start or defend legal proceedings because of the potential cost. The addition of AmTrust reflects APRA’s ongoing role in facilitating a strong, well-regulated insurance market that serves policyholders effectively. It also signals APRA’s continued support for innovation and diversification within the sector.
Opening Statement to Senate Economics Legislation Committee
In his opening statement to the Senate Economics Legislation Committee, APRA Chair John Lonsdale reaffirmed that Australia’s financial system remains resilient despite heightened global risks, including cyber threats and operational disruptions. APRA outlined its priorities, including improving cyber security across regulated industries, strengthening crisis response frameworks, and addressing rising household indebtedness with targeted measures such as new debt-to-income lending limits. The statement also highlighted ongoing supervisory and enforcement work across banking, insurance and superannuation sectors to uphold prudential standards and protect community outcomes. This comprehensive update reflects APRA’s strategic focus on balancing safety, stability and innovation in an evolving risk environment.
Opening Statement to Senate Economics Legislation Committee
Broker share prices dropped as ChatGPT apps emerge
The emergence of ChatGPT-powered insurance apps has brought concerns to insurance intermediaries and brokers, as these apps can help customers research, compare quotes and purchase insurance. They can enable customers to acquire tailored insurance quotes via ChatGPT, which is now being seen as a genuinely new insurance distribution channel. The launch of these apps have led to share prices for global leading insurance intermediaries to tumble as investors react to the apps’ impact on brokers’ roles. As research suggests that AI disruption risk would be most pronounced in the retail broking segment, insurers and intermediaries are now exposed to real AI threats, and not just over the long term.
Broker share prices fall after ChatGPT apps emerge - Insurance News - insuranceNEWS.com.au
Key dates
- 31 March 2026 – enrolment opens for AML/CTF tranche 2 entities.
- 1 July 2026 – AML/CTF obligations commence for tranche 2 entities.
- 1 July 2026 – Mandatory climate related financial reporting annual reporting period commences for Group 2 entities.
In case you missed it
The commencement of the Financial Accountability Regime (FAR) is approaching its anniversary on 15 March 2026. Reach out to us for insights on the application of FAR and training for accountable people, including simulation exercises, which can be invaluable to identify gaps in your FAR compliance framework.
