Key areas of focus for 2026
- AFCA Claims handling Approach – consultation on AFCA’s Approach to general insurance claims handling has closed. The new Approach is expected to be released shortly. Insurers have key obligations under the Insurance Contracts Act 1984 (Cth), including the duty of utmost good faith, which requires them to handle insurance claims fairly, transparently, and efficiently. This Approach provides information about how AFCA considers various types of complaints relating to the handling of general insurance claims, against an insurer’s legal obligations and has regard to industry standards.
- Cash Settlements. In ASIC’s Corporate Plan 2025-26 – We will review general insurers’ use of cash settlements to better understand the practices and disclosures surrounding the offers being made and to assess whether there are risks of consumer harm. CAsh Settlements were also called out as an area of 2026 focus by the Code Governance Committee and in AFCA’s [new] Claims Handling Approach.
- Industry use of external experts. has highlighted improvements in how insurers oversee and engage external experts, with better measures to strengthen accountability and quality assurance. The CGC, in its Oversight of external experts: follow up 8 December 2025 has identified areas of ongoing work.
- Pricing promises and pricing transparency. ASIC Corporate Plan 2025-26 We will examine the accuracy and transparency of general insurers’ disclosures about premiums and work to better understand consumer experiences.
- Complaints (IDR). In 2024, ASIC reviewed 11 general insurers to understand how they are supporting customers who make a complaint. ASIC’s Report 802 highlighted a failure to identify 1 in 6 complaints and a lack of identifying systemic issues. ASIC has also indicated that it will be moving to publishing IDR data at a firm-level (refer CP 383). The General Insurance Code Governance Committee highlighted complaints handling as a main priority for 2025-26. The Insurance Brokers Code Compliance Committee in their Annual Report 2024-25 found 42% of brokers reported no breaches or complaints
- Incident and Breach Reporting. ASIC’s review of reportable situations (4th December 2024) revealed a number of poor practices among licensees including deficiencies in Licensee’s incident mangement. The Insurance Brokers Code Compliance Committee in their Annual Report 2024-25 found 42% of brokers reported no breaches or complaints
- Privacy changes were introduced in December 2024 with automated-decision making to be regulated by December 2026. The OAIC launched a new Notifiable Data Breaches (NDB) statistics dashboard 4 November 2025. Additional changes are contemplated to the Privacy Act.
- CPS 230 – operational resilience and BCPs. The new prudential standard CPS 230 introduces strict requirements for insurers to strengthen operational resilience, meaning they must effectively manage operational risks and ensure continuity of critical functions during and after a disruption event and oversee “material service providers” such as claims processing and underwriting agencies. APRA will conduct a review of the large insurers during 2026 with learnings shared for all other insurers and there material servcie providers.
- GI Code of Practice. The insurance Council of Australia and insurers are moving to the next stage of the development of a new General Insurance Code of Practice, with a redrafted Code that is consumer-centric, modern, fit-for-purpose, and contractually enforceable. The new Code is anticipated to be released for consultation Q1 2026. ASIC Commissioner Alan Kirkland at the Insurance Council of Australia Annual Conference on 10 October 2025 stated, The development of a new General Insurance Code of Practice that will be enforceable by contract is an important step towards rebuilding trust. However, unless the provisions themselves improve overall levels of consumer protection, it will be a step backwards.
- Insurance Brokers Code of Practice – remuneration. The Independent reviewer of the Brokers Code released their report in December 2025. The NIBA Board advised that it is carefully considering the report. A response to the Reviewer’s report will be released soon. NIBA will continue engaging with members and key stakeholders regarding next steps. A key recommendation for Section 6.1 of the Code is to oblige brokers to provide all individual and small business clients with remuneration disclosure regardless of the type of insurance product.
- 2026 ASIC enforcement priorities. In 2026, ASIC’s enforcement priorities (relevant to general insurance) are: (1) misleading pricing practices impacting cost of living for Australians, (2) financial reporting misconduct including failure to lodge financial reports and (3) Claims and complaint handling failures by insurers
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