(Re)Insurance and Regulation Focus - week commencing 26 October 2026
02 November 2026
Key developments in the last fortnight
New Insurance Brokers Code increases transparency and consumer protections
NIBA has launched the 2027 Insurance Brokers Code of Practice, introducing enhanced standards for disclosure, transparency and client service across the insurance broking industry. Among the key reforms, clients will be able to request remuneration information expressed in dollar terms, while brokers will be subject to strengthened obligations regarding conflicts management, record keeping and support for vulnerable clients.
The new Code also places a greater emphasis on consumer outcomes by introducing more robust requirements for complaints handling and client communications. In addition, it strengthens governance and accountability expectations, with a focus on demonstrating compliance, maintaining appropriate records and embedding higher professional standards throughout the insurance lifecycle.
NIBA Launches the 2027 Insurance Brokers Code of Practice
AFCA highlights operational risk and claims handling shortcomings
AFCA’s latest Systemic Issues Insights Report reinforces that many systemic failures are not driven by a lack of policies, but by weaknesses in operational execution, oversight and governance. Key themes included claims handling delays, complaint management failures, inadequate oversight of outsourced service providers, and poor identification of vulnerable customers. According to the report, AFCA's systemic investigations delivered remediation for more than 180,000 consumers and small businesses, while also driving broader operational reforms across the financial services sector.
AFCA publishes latest Systemic Issues Insights Report
APRA’s expectations on governance and operational resilience
APRA's 2025-26 Annual Report reinforces the regulator's focus on governance, risk culture and operational resilience as key drivers of financial system stability. The Report highlights increasing supervisory attention on cyber security, operational risk, outsourcing arrangements and emerging risks, reflecting APRA's expectation that boards and executives actively oversee and manage these issues. For insurers, the report sends a clear signal that policies alone are not enough, with regulators increasingly assessing how effectively governance and risk frameworks operate in practice. As regulatory scrutiny continues to intensify, operational effectiveness and accountability remain central to maintaining stakeholder confidence and long-term resilience.
APRA data reveals improving claims timeliness but rising disputes
APRA’s latest life insurance claims and disputes statistics indicate that claims are being assessed more quickly, reflecting ongoing process improvements across the sector. Despite this, complaints volumes continue to rise, highlighting ongoing consumer concerns and the importance of robust claims decision-making frameworks. The data reinforces the continuing regulatory and public focus on claims handling practices and customer outcomes in the life insurance industry.
Life insurance claims and disputes statistics
Life insurers face renewed scrutiny over Code compliance
Reported breaches of the Life Insurance Code of Practice have now exceeded 10,000, reigniting debate regarding transparency, accountability and enforcement within the sector. The ongoing focus on Code compliance reflects broader expectations that insurers deliver fair customer outcomes and maintain high standards throughout the policy and claims lifecycle. The issue is likely to remain a key point of attention for regulators, consumer advocates and industry bodies.
Government backs stronger protections against financial abuse
The Federal Government has accepted most of the recommendations from the financial abuse inquiry, including measures relevant to insurers and other financial institutions. The reforms are expected to strengthen identification and support mechanisms for vulnerable customers, improve information-sharing frameworks and promote more consistent responses to financial abuse. For insurers, the developments reinforce growing expectations around vulnerability and customer protection.
Albanese government advancing reforms to combat financial abuse
Genetic testing reforms come into law
New federal laws prohibit life insurers from requesting or using adverse genetic test results in underwriting decisions for most life insurance products. ASIC will enforce the regime, AFCA can hear related complaints, and breaches may attract penalties of up to $1.65 million. The reforms are intended to remove barriers to genetic testing while ensuring consumers are not disadvantaged when seeking life insurance cover.
Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025
ASIC emphasises enforcement and consumer outcomes
ASIC’s 2025-26 Annual Report highlights a continued focus on enforcement activity, consumer protection and regulatory outcomes across the financial services sector. The report signals that misconduct, governance failures and poor consumer outcomes remain key regulatory priorities. Insurers and intermediaries should expect ongoing scrutiny of compliance frameworks, customer remediation programs and operational practices.
ASIC's annual report outlines strong enforcement and consumer outcomes
Key dates
- 2 November 2026 – Treasury consultation on raising the reporting threshold for large proprietary companies closes.
- 13 November 2026 – ASIC consultation on proposal to remake the IDR data reporting instrument closes.
- 17 – 18 November 2026 – ASIC Annual Forum.
- 27 November 2026 – Treasury consultation on tackling fraud and financial abuse closes.
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.
