(Re)Insurance and Regulation Focus - week commencing 12 October 2026
14 October 2026
Key developments in the last fortnight
AFCA consults on life insurance approach documents
AFCA has progressed its work on two new life insurance approach documents dealing with non-disclosure, misrepresentation and the duty to take reasonable care not to make a misrepresentation. The guidance is designed to provide greater transparency around how AFCA assesses life insurance complaints and applies legal principles, industry codes and regulatory guidance when determining outcomes. For insurers, advisers and claims teams, the final documents are likely to become important reference points in resolving disputes. The initiative highlights the continuing focus on consistency, predictability and efficiency in life insurance dispute resolution.
Joint consultation on life insurance Approach documents
ASIC signals increased scrutiny of claims management practices for general insurers
ASIC has identified claims management practices as a key focus area for the general insurance sector in 2026-27, with particular attention on for-profit claims management firms involved in home insurance claims. The regulator has flagged concerns around client acquisition practices, fee arrangements, involvement in claims and complaints handling, and relationships with repairers and other service providers. ASIC's review reflects a broader focus on ensuring claims processes operate fairly and deliver positive consumer outcomes, particularly in disaster-affected communities. Claims handlers and insurers should expect increased scrutiny of claims-related practices and consider whether existing governance, oversight and customer engagement processes remain fit for purpose.
ASIC’s 2026–27 general insurance sector priorities
ASIC prioritises greater regulatory certainty across financial services
A key theme emerging from ASIC's latest supervisory priorities is a renewed emphasis on regulatory coordination and early engagement with industry. Working alongside APRA and other regulators, ASIC has sought to provide clearer forward-looking guidance on areas of supervisory focus while reducing unnecessary regulatory overlap. The result is a more transparent framework that allows financial services businesses to better anticipate regulatory expectations and prioritise risk management efforts. Regulated entities should note that greater certainty from ASIC does not lessen scrutiny, but it does enable more informed and proactive compliance planning.
Key dates
- 2 November 2026 – Final report from Senate inquiry into greenwashing due.
- 5 – 6 November 2026 – ICA Annual Conference.
- 17 – 18 November 2026 – ASIC Annual Forum.
In case you missed it
The Sparke Helmore team has been advising on the application of FAR and compliance measures, including conducting FAR simulation exercises for Accountable Persons, embedding and testing the effectiveness of entities’ FAR implementations. If this is of interest to you, please reach out and let us know.
