𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝘆𝗶𝗻𝗴 𝗮𝗻𝗱 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗼𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀

  • Compliance Advocacy Solutions
  • News
  • 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝘆𝗶𝗻𝗴 𝗮𝗻𝗱 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗼𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀

I’m currently compiling an obligations register for an APRA-regulated insurer.

At a Federal level, there are more than 400 obligations that a general insurer needs to identify & manage by mapping to key control(s) & the person(s) accountable.

Underwriting Agencies, TPA’s & Insurance Broker generally have 150-200 obligations.

For smaller-sized clients, I include obligation tables within a tailored Risk & Compliance manual so that everything is retained in one place & there is context for the obligations.

The important lesson is, how can you manage your obligations if you don’t capture [record] them?

𝙎𝙤𝙪𝙧𝙘𝙚𝙨 𝙤𝙛 𝙤𝙗𝙡𝙞𝙜𝙖𝙩𝙞𝙤𝙣𝙨 𝙛𝙤𝙧 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙄𝙣𝙨𝙪𝙧𝙖𝙣𝙘𝙚

The starting point is to get a good text that covers the clauses and provides a pathway to any associated regulations or ASIC Regulatory Guides.

I use Thomson Reuters 2024 Corporations Legislation & Lexis Nexis Australian Corporations Legislation 2024 – Vol 1 & 2.

So what are the key sources of obligations for general insurance?

𝘊𝘩𝘢𝘱𝘵𝘦𝘳 7 – 𝘊𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘪𝘰𝘯𝘴 𝘈𝘤𝘵

7.6 – licensing issues, general AFSL obligations, Auth Reps, & restricted [broker] terms
7.7 – disclosure requirements: FSG & Cash Settlement Fact Sheet
7.8 – dealing with clients’ money, lodging financial returns & auditor
7.8A – design & distribution obligations (& TMD)
7.9 – product disclosure: PDS, SPDS, cooling off
7.10 – market misconduct: misleading conduct


Pt 2, Div 2 – unconscionable conduct, unfair contract terms, misleading or deceptive conduct, add-on insurance

𝘐𝘯𝘴𝘶𝘳𝘢𝘯𝘤𝘦 𝘊𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘴 𝘈𝘤𝘵

  • includes the duty to take reasonable care, UGF & s54
  • 𝘗𝘳𝘪𝘷𝘢𝘤𝘺 𝘈𝘤𝘵 including the 13 Australian Privacy Principles
  • 𝘈𝘗𝘙𝘈 𝘗𝘳𝘶𝘥𝘦𝘯𝘵𝘪𝘢𝘭 𝘚𝘵𝘢𝘯𝘥𝘢𝘳𝘥𝘴 for Governance, Risk Management, Financial Resilience, Recovery & Resolution & Reporting

𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘈𝘤𝘤𝘰𝘶𝘯𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘙𝘦𝘨𝘪𝘮𝘦 𝘈𝘤𝘵

Also, don’t forget:

  • Insurance Act especially s114 use of words ‘insurance’ & insurer
  • Spam Act & DNCR Act
  • Autonomous Sanctions – DFAT & United Nations

and of course General Insurance Code of Practice & Insurance Brokers Code of Practice.

𝙄𝙙𝙚𝙣𝙩𝙞𝙛𝙮𝙞𝙣𝙜 & 𝙢𝙖𝙣𝙖𝙜𝙞𝙣𝙜 𝙤𝙗𝙡𝙞𝙜𝙖𝙩𝙞𝙤𝙣𝙨 – 𝙖 𝙜𝙧𝙚𝙖𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩

Identifying, recording & managing obligations through key controls & accountability, requires some initial investment of resources however the ongoing benefits soon outweigh the costs.