1. Introduction
In our Insurance Regulatory Landscape 2023 publication, our corporate regulatory and digital privacy experts provide their insights into what 2023 will hold for the insurance sector in Australia.
While the world continues to adjust to the new normal after the pandemic, in 2023 we can expect the regulatory landscape in which insurers, reinsurers and intermediaries operate in Australia to remain dynamic, providing challenges but also opportunities for those who can stay ahead of the game.
To assist businesses with preparing for the year ahead, we share our recommendations as to how businesses should approach the challenges that lie ahead to deal with regulatory change and increased enforcement action by Australian regulators.
What are some of the key trends for 2023?
- Australian regulators are shifting from monitoring the implementation of post-Financial Services Royal Commission regulatory reform, to scrutiny of compliance on an ongoing basis. Areas of specific focus for ASIC will be unfair contract terms, claims handling and settling services, product design and distribution obligations and pricing promises.
- There is also a spotlight on governance, with APRA focussed on organisational risk, and the Financial Accountability Regime to increase the responsibility and accountability of senior executives at APRA-regulated insurers and reinsurers.
- Climate change continues to be a topic of regulatory interest. A new climate-related finance disclosure framework is anticipated and ‘greenwashing’ will be an enforcement target.
- The high profile data breaches and resulting impact on the customers of Optus and Medibank Private in 2022 have resulted in a renewed focus on cyber security and the storage and use of data. A Consumer Data Right will be rolled out to all consumer-focused sectors including insurance, there will be a wave of new reforms to Australia’s privacy regime, including penalties, and an ongoing focus on security of critical infrastructure, which will directly apply to certain insurers.
- The insurance sector will also have to adapt to emerging trends in the area of financial crime. There has been a significant increase in the use of autonomous sanctions which will require greater focus on potential sanctions risks. The modern slavery regime is also under review in Australia and companies will need to be ready to adapt.
Click the links below to read our 2023 Australian Insurance Regulatory Landscape.
Product Regulation
