Comply with claims handling + settling as a financial service (s 766A)
From 1 January 2022, insurance claims handling is a financial service requiring AFSL authorisation.
Who must comply
Insurers, claims handlers, run-off insurers, loss assessors providing claims-handling services to retail clients.
What triggers it
Providing claims-handling services to retail clients.
When due
Continuous.
Evidence required
AFSL authorisation, claims-handling policy, complaints register, supervision records.
Max penalty
Civil penalties to the financial-services maximum ($15.65M / 3× / 10% turnover)
Summary
Following Royal Commission recommendation 4.8, claims handling + settling services were made a 'financial service' under the Corporations Act. Insurers + claims handlers must hold appropriate AFSL authorisations, comply with s 912A general obligations + IDR (RG 271).
Enforced by
Source legislation
Industries
Topics
Source: https://asic.gov.au/regulatory-resources/financial-services/insurance-product-claims-handling/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.