(Re)Insurance and Regulation Focus - week commencing 3 August
04 August 2026
Key developments in the last fortnight
APRA responds to Commonwealth Government’s updated expectations
On 16 July 2026, APRA published a Statement of Intent (SoI) in response to the Commonwealth Government’s recently published Statement of Expectations (SoE) regarding the Regulator’s role, policy priorities, regulatory approach, stakeholder relationships and other organisational matters. Relevantly for insurers, the SoE expects APRA to promote a viable, competitive, and innovative insurance industry, while helping address insurance affordability and availability. The Government also expects APRA to promote and monitor responsible AI use, strong cyber resilience, and the disclosure of climate-related financial risks. Further, the SoE emphasises the need for burden reduction through proportionate regulatory requirements, streamlined data collection, and a transparent standards review program. In response, APRA’s published SoI broadly aligns with the Government’s expectations, with some notably minor divergence on jurisdictional matters.
Statements of Expectations | Treasury.gov.au | Government expectations of APRA | APRA
ASIC responds to Commonwealth Government’s updated expectations
Similarly, on 16 July 2026, ASIC published a corresponding SoI in response to the Commonwealth Government’s separate SoE in respect of ASIC. The SoE outlines the Government’s core expectation of ASIC to promote the sound functioning of Australia’s financial system, financial markets, and the corporate sector for the benefit of consumers, investors, and businesses. Of specific interest to insurers and their intermediaries, the SoE directs ASIC to promote and monitor responsible use of AI; support its oversight of AFCA and facilitate necessary changes to AFCA’s rules and jurisdiction; while also taking a pragmatic and proportionate approach to climate-related financial disclosures, deterring greenwashing; and finally, maintaining a regular and transparent review program for ASIC’s suite of regulatory guidance and legislative instruments. ASIC’s published SoI closely aligns with the Government’s expectations, with near-direct adoption and no open points of disagreement.
Statements of Expectations | Treasury.gov.au | Statements of expectations and intent | ASIC
ASIC Reports record $830 million in civil penalties for 2025-26
ASIC announced on 20 July 2026 that civil penalty orders reached $830 million for the 2025-26 financial year, comprising $480 million ordered between January and June 2026, in addition to the $350 million ordered from July to December 2025. A further $643.5 million is being returned to customers through remediation, refunds, and other payments connected to ASIC’s enforcement work. This year also saw more than 250 investigations launched, 32 new civil proceedings, 18 new criminal prosecutions and 25 criminal conditions, 21 of which attracted custodial sentences. ASIC Chair Sarah Court highlighted systemic failures in systems, governance, and conduct, spanning scams, hardship failures, market infrastructure, superannuation, private credit, financial reporting, and digital assets.
GICGC sets 2026-2027 monitoring priorities
On 14 July 2026, the Code Governance Committee published its 2026-27 monitoring priorities. The two key priority areas identified are the implementation of the yet to be finalised revised General Insurance Code of Practice, and motor claims handling in response to ongoing concerns about repair outcomes and delays, which the Committee identified as a key driver of customer complaints. Additionally, the Committee outlined its continuing priorities of temporary accommodation and supporting customers experiencing vulnerability; and strengthening the identification of systemic issues in the insurance industry. These priorities are informed by monitoring and analysis of insurance data including complaints to AFCA, stakeholder engagement including key submissions from insurers and industry bodies, and the upcoming legal enforceability of the Code, which we discussed in our previous publication for the fortnight commencing 6 July 2026.
GICGC-Annual-Priorities-2026-27 | (Re)Insurance and Regulation Focus - week commencing 6 July
Private health insurer margins narrow as Government opens two reform fronts
APRA data shows private health insurers’ net profit after tax from continuing operations fell $210 million in the March 2026 quarter, down from $431 million a year earlier, with net margins narrowing to 3.6% from 5.5% in the same period. Despite this, the average out-of-pocket payment per hospital visit rose 8.9% to $511.02. In response, the Department of Health, Disability and Ageing has opened its 'Fee Transparency in Health Care' consultation on informed financial consent and split billing, closing 5 August 2026. In addition to this consultation, the Health Legislation Amendment (Improving Choice and Transparency for Private Health Consumers) Bill 2026 (the Bill) currently before Parliament would, if enacted in its current form, publish individual specialist’s fees, require ministerial approval for premiums on new products or for certain changes reducing the cover or value of existing ones. Further, the Bill proposes to outlaw 'product phoenixing', where an insurer closes a product and re-opens a near-identical one at a higher price.
Consumer groups refer strata broker conduct to ASIC, as code talks collapse
The Australian Consumers Insurance Lobby (ACIL) and the Owners Corporation Network (OCN) held a briefing with ASIC on 21 July 2026 alleging it had identified unauthorised broker appointments across an estimated ~1,000 strata insurance policies, and asking that ASIC determine whether the broker’s conduct breaches s 912A of the Corporations Act 2001 (Cth) and ASIC RG 181 on conflicts management. ACIL Chair, Tyrone Shandiman, described it as one of the largest referrals concerning an Australian insurance broker’s conduct ever made to ASIC. This referral follows ACIL’s withdrawal, together with OCN and the Unit Owners Association of Queensland, from NIBA’s Insurance Brokers Code of Practice reform consultations, with Shandiman framing the shift as building an evidence base to support future reform, including strengthening ASIC RG 181. This referral lands amid rising scrutiny of strata broking. The Insurance Broker Code Compliance Committee’s most recent review of broker-agent arrangements in the sector found multiple breaches across the brokers examined, with regulatory reform on the horizon in NSW as outlined in our publication for the fortnight commencing 30 March 2026.
Consumer groups ask ASIC to probe major strata broker matter | Insurance Business | (Re)Insurance and Regulation Focus - fortnight commencing 30 March 2026
Suspended sentence activated against former SA insurance broker for further offending
A former insurance broker and company director has been ordered to serve a previously suspended three-year prison sentence, having been found to have breached the good behaviour requirement imposed following his 2013 conviction for using his position contrary to multiple provisions of the Corporations Act 2001 (Cth). The broker’s 2013 conviction and 2012 ban from providing financial services followed an ASIC investigation into the diversion of 89 client insurance premium payments totalling approximately $414,000 into the broker’s personal accounts between 2007 and 2010, concealed by falsified bank statements and the cancellation of clients’ policies, leaving them without cover.
26-151MR Former insurance broker’s suspended sentence activated after further offending | ASIC
Key dates
- 7 August 2026 – Consultation on draft Insurance Brokers Code of Practice closes.
- 21 August 2026 – APRA consultation on updates to reporting framework closes.
- 28 August 2026 – APRA consultation on amendments to CPS 510 closes.
- 16 October 2026 – Consultation on Fee Transparency in Health Care 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.
