We last wrote about the upcoming unfair contract terms reforms in our article ‘The ‘fairness revolution’ continues: Government releases draft legislation extending unfair contract terms regime to insurance’. With only 10 months to go until the unfair contract terms laws apply to insurance contracts, insurers and coverholders should prepare for implementation by undertaking a legal review of affected policies. While implementation of a number of reforms has been delayed by six months,…

The recent Federal Court of Australia decision in Delor Vue Apartments CTS 39788 v Allianz Australia Insurance Ltd (No 2) [2020] FCA 588 found an insurer can be estopped from changing its mind on a claim. The case provides guidance for underwriters and brokers on the need to make appropriate inquiries during the underwriting process and for claims officers to be diligent when granting indemnity. It may not be possible, nor in line with community…

While the clock is still ticking for insurers to implement reforms recommended by Commissioner Hayne, it is now ticking more slowly. The Australian Government has announced that implementation of the reforms recommended by the Financial Services Royal Commission will be deferred due to the COVID-19 pandemic. Commencement dates contained in the exposure draft legislation issued prior to the COVID-19 pandemic will be extended by 6 months. This gives insurers, third party claims administrators, coverholders and…

The Insurance Council of Australia recently launched the 2020 General Insurance Code of Practice (GICOP). The new GICOP continues the evolution of insurer self-regulation which commenced in 1994 and, like its previous iterations, promotes protection of consumers and other policyholders at various touchpoints throughout the customer journey. While the adoption of the GICOP is currently voluntary, compliance is monitored by the Code Governance Committee. The Australian Securities and Investments Commission (ASIC) is expected to eventually…

In what is sure to be welcome news, the Australian government has announced temporary relief for company directors from Australia’s notoriously tough insolvent trading laws. This is a sensible decision, which is good news for directors (and their insurers) in what is proving to be unprecedented times. Directors face personal liability if the company trades while insolvent. The speed with which the global economy is grinding to a halt is already making it incredibly difficult…

The month of February 2020 has seen the passing of a number of bills implementing recommendations from the financial services Royal Commission, including measures strengthening the Australian Securities and Investments Commission’s (ASIC) licensing, search warrant and banning powers as well as reforms to protect consumers. February has also seen the welcoming of proposals from both ASIC and the Australian Prudential Regulatory Authority (APRA) as co-regulators of the superannuation industry as well as the passing of…

The months of December 2019 and January 2020 have proven to be a busy time for our Government and regulators, with significant changes and proposals for the funds and financial services sector. In particular, Treasury have released 17 bills in response to 22 recommendations made by Commissioner Hayne in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission), as well as ASIC releasing draft guidance for industry consultation on…