(Re)Insurance and Regulation Focus - fortnight commencing 2 March 2026

Key developments in the last fortnight

ASIC sues insurer for policy discount misrepresentations to consumers

ASIC has commenced legal proceedings against a major insurer, alleging that the insurer made false or misleading representations about the price of insurance premiums as it advertised online discounts for purchasing certain insurance policies between March 2020 and July 2024. Approximately 39,000 customers lost their online discount without being told after making changes to their insurance during the first year. ASIC alleges the advertising was misleading because customers were not told the discounts would be removed following any changes made to the policy (such as a change in address). ASIC also alleges that the insurer failed to fix the issue or inform affected customers, despite knowing about the issue for years. ASIC Deputy Chair Sarah Court said the case highlighted the importance of ASIC’s 2026 enforcement priority which focuses on misleading pricing practices impacting the cost of living for Australians.

ASIC sues insurer alleging policy discount misrepresentations made to millions of consumers in Budget Direct insurance ads | ASIC

Misconduct reports to ASIC reveal corporate governance concerns

ASIC data has revealed an increasing number of misconduct reports are largely driven by corporate governance issues, including failures to provide company records, insolvency matters and shareholder issues. The data shows that, in the second half of 2025, more than 13,000 issues were raised across almost 10,000 misconduct reports. Of those issues 40% related to corporate governance matters and 44% to financial services and retail investment, reaffirming that it remains a top priority for ASIC to tackle governance and directors’ duties failures. ASIC’s Deputy Chair said robust governance isn’t just good practice – it’s good for business and for Australia.

Misconduct reports to ASIC highlight spike in corporate governance issues | ASIC

ASIC secures the highest six-monthly civil penalty of $350 million

ASIC has published its six-monthly enforcement and regulatory update report for the second half of 2025, which highlighted $350 million in civil penalties imposed by the courts (being the highest in history) and $583 million delivered back to Australians as part of ASIC’s investigation and remediation work. These figures reflect ASIC’s successful cases against some of Australia’s largest companies and super trustees, including ANZ, NAB, Cbus and RAMS. ASIC’s criminal enforcement work has also helped to hold to account those who failed to comply with Australia’s financial services laws, including with the Supreme Court of Western Australia sentencing fraudster Chris Marco to a 14-year term of imprisonment (being the longest prison sentence imposed by an Australian court in relation to an ASIC criminal investigation). ASIC Chair Joe Longo said ASIC’s work will continue to intensify in 2026.

ASIC secures record $350 million in civil penalties and $583 million back to Australians in second half of 2025 | ASIC

ASIC warns customers of advice licensees using lead generation services

ASIC has commenced a review of advice licensees using lead generation services, which are marketing activities designed to create consumer interest and persuade consumers to purchase a product or service, including businesses that encourage consumers to switch their super. ASIC has published a list of entities involved in lead generation and has encouraged consumers to use caution when receiving marketing calls from those entities. ASIC reminds advice licensees of their legal obligations in marketing activities and warns that they should not mislead consumers or use high pressure sales tactics. ASIC also warns consumers of the typical features of lead generation, including the touting of free superannuation ‘health checks’ and prizes (often via social media advertisements) and promises of high or unrealistic returns.

ASIC commences new review of advice licensees that use lead generation services | ASIC

ASIC cancels AFS licence of securities dealer for breaches of duties

ASIC has cancelled the Australian financial services (AFS) licence of a securities dealer who has held the licence since 2002, after finding that it had serious and sustained breaches of its duties under section 912A of the Corporations Act. These include failures to adequately supervise its corporate authorised representatives (CARs) and to take reasonable steps to ensure that they complied with financial services laws. ASIC also found the securities dealer failed to maintain organisational competency to provide financial services, ensure adequate resources including staffing, prepare and lodge financial statements and pay industry funding levy. ASIC’s action is intended to send a strong message to the industry that persistent breaches of licensee obligations can lead to licence cancellation and licensees should take compliance with their obligations seriously.

ASIC cancels AFS licence of securities dealer for serious and sustained breaches of duties | ASIC

Key Dates

• 17 March 2026 – Treasury’s consultation closes on the review of the amended Unfair Contract Terms protections.
• 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.