(Re)Insurance and Regulation Focus - fortnight commencing 8 December 2025

Key developments in the last fortnight

New law to stop adverse genetic testing results being used to underwrite life insurance

The Government has introduced the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (Cth) (the Bill) to amend the Insurance Contracts Act 1984 (Cth), establishing a ban to stop insurers from using certain information about an individual’s genetic testing results to determine the underwriting of life insurance cover. The new law will commence six months after the Bill receives Royal Assent, which is likely to happen sometime in 2026.

Legislation introduced to ban the use of adverse genetic testing results in life insurance

ACCC delays IAG-RAC decision

Early this year, Insurance Australia Group Limited (IAG) proposed to buy all the shares in RAC Insurance Pty Limited (RACI) from the Royal Automobile Club of Western Australia Inc (RAC) and enter into a 20-year agreement for RAC to exclusively distribute insurance products underwritten by IAG using the RAC brand. IAG and RACI both provide personal lines general insurance, including home and contents insurance and motor insurance in Western Australia. The ACCC was expected to announce its decision on whether to oppose the acquisition last month but has delayed its decision stating that the ACCC needed to consider further information provided by the merger parties. The ACCC now proposes to announce its decision on 11 December 2025. We will keep an eye out for it.

IAG Limited – RAC Insurance Pty Limited

ASIC updates guidance on industry codes of conduct for financial services and credit sectors

ASIC has revised its Regulatory Guide 183 Codes of conduct for the financial services and credit sectors (RG 183), providing clarification on when ASIC will approve industry codes and confirming that both approved and non-approved codes can influence industry standards. The updated guidance reflects legislative changes since 2013 when the guide was last updated and explains the criteria for code approval and the steps industry bodies and code owners must follow to obtain and maintain ASIC approval. RG 183 is also now expressly linked to ASIC’s reportable situations (i.e. breach reporting) regime, such that where a breach of a code provision also constitutes a breach of the law, the code breach may be reportable.

ASIC updates code guidance for financial services and credit; RG 183 Codes of conduct for the financial services and credit sectors

Treasury consults on class exemptions from the deferred sales model regime

In October 2021, the deferred sales model regime commenced with the objective to reduce the risk of unfair sales tactics and adverse consumer outcomes, including as had been found by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Set out in the Australian Securities and Investments Commission Act 2001 (Cth), the deferred sales model is designed to ensure consumers can make informed decisions about add-on insurance products by introducing a four-day deferral period between the sale of a primary product or service and the sale of an add-on insurance product to the consumer. Under the regime, there are certain class exemptions for add-on insurance products, which will expire on 5 October 2026. Treasury is calling for feedback from stakeholders as to whether to continue these exemptions and whether to exempt other classes of add-on insurance products in the future. Make a submission before it closes on 30 January 2026.

Deferred sales model – class exemptions

ASIC demands better practices to protect whistleblowers

ASIC has released Report 827 Insights from the ASIC whistleblower questionnaire: July 2024 to June 2025, showing significant variations in the whistleblower policies and practices adopted across corporate Australia among 134 entities in 18 industries. ASIC found that a significant percentage of those entities did not have a dedicated whistleblower web page for raising concerns nor provide staff training or seek feedback on their whistleblower program. The Report highlights opportunities for companies to better support and protect those who speak up, including providing dedicated web pages for whistleblower reporting, enabling communication with anonymous disclosers and fostering a stronger speak-up culture. This serves as an important reminder from ASIC of entities’ obligations to protect whistleblowers and to manage whistleblower disclosures confidentially. As ASIC Commissioner Alan Kirkland said '[s]trong, appropriate and effective whistleblower practices go to the core of good corporate governance. These programs provide important information for directors to oversee their company’s operations and compliance with the law.'

ASIC calls on Australian companies to adopt better practices to protect whistleblowers

ASIC updates guidance on Product Disclosure Statements

ASIC has released updated Regulatory Guide 168 Product Disclosure Statements: Disclosure and other obligations (RG 168) following consultation with stakeholders earlier this year. RG 168 provides guidance on preparing a PDS that complies with the requirements in the Corporations Act 2001 (Cth), setting out good disclosure principles and how ASIC monitors the use of PDSs and enforces the requirements. The updates aim to provide clarity and improve the industry’s ability to prepare PDSs by incorporating further guidance from regulatory guides which are to be withdrawn along with ASIC relief instruments that stakeholders indicated were useful. ASIC has also updated its guidance on compliance risks where the PDS requirements are not met, highlighting that product disclosure remains a key aspect of the consumer protection regime.

ASIC updates guidance on Product Disclosure Statements

Report discovers good and bad practices for motor insurance application

The General Insurance Code Governance Committee has published a new report Applying for motor insurance – a review, which examined customer experience when they applied for motor insurance online with 58 insurance brands across 13 insurers. The report discovers practices used by insurers that can be improved, including the lack of explanation to customers when asking for their personal information and the lack of information given to customers when cover cannot be offered. The report also found good practices, including insurers that provide clear, tailored explanations and practical guidance for customers whose applications cannot proceed. The report sets out expectations for insurers to improve the clarity and transparency of their application processes and to ensure customers are well supported and informed in their decision making.

Our latest report on motor vehicle insurance applications

Key dates

• 28 November 2025 – ASIC's consultation on proposed changes to the Unclaimed Monies Gazette closes.
• 15 December 2025 – ASIC’s consultation closes on the Life Insurance Code of Practice review.
• 22 January 2026 – ASIC’s consultation closes on the proposed updates to Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance.
• 30 January 2026 – AFCA’s consultation closes on targeted adjustments to the general insurance reinsurance framework.
• 30 January 2026 – Treasury’s consultation closes on class exemptions from the deferred sales model regime.

In case you missed it

The Sparke team have been conducting board level training for the upcoming mandatory sustainability reporting regime (with great success). If this is of interest to you, please reach out and let us know.