Liability Insurance Australia :: News

Share this news item!

Simplifying Insurance Advice: Industry and Consumers Aligned

⚠️The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Insurance Council of Australia (ICA) is urging a revision of existing advice regulations to significantly improve customer interaction quality.

This push comes ahead of an anticipated wave of reforms by the federal government expected to ease the delivery of simple advice within the insurance sector.

In a noteworthy development, a draft legislation is set to be unveiled, which could transform the way industry professionals dispense advice, particularly in simplifying the advisory framework to better meet customer needs. "We are supportive in principle of proposals that would have the potential to enhance the quality of interactions between insurers and consumers," an ICA spokesperson stated today, reiterating to insuranceNEWS.com.au the council's stance on refining advisory practices.

The current regulatory environment, the ICA suggests, hampers insurers by restricting their ability to offer advice specifically tailored to individual client needs and inquiries. This legislative environment, they argue, stands in the way of providing bespoke product advice, leading to a call for change. The desire for law reform aligning product advice with consumer circumstances was initially spurred when Financial Services Minister Stephen Jones presented the government's anticipated reforms from the Quality of Advice Review the previous year.

The proposed legislation seeks to bring clarity on the "simple advice" model, a concept aimed at differentiating it from existing advisory roles. This effort aligns with establishing a new class of advisers, primarily drawn from employees of insurers and financial service providers, trained specifically for such duties. These advisers will receive distinctive training to issue straightforward advice without imposing traditional fees or commission structures.

To contextualize, both general and life insurers, under current stipulations, are confined to dispensing general advice only, limiting their reach in personalized recommendations. The evolving policy discourse suggests a shift toward a model where personal interaction becomes more significant, potentially augmenting consumer trust and the tailoring of insurance products to individual lifestyles.

As depicted in the original write-up from insuranceNEWS.com.au, there’s a shared optimism about these impending changes enhancing the delivery of streamlined guidance while maintaining vigorous checks on advisory protocols. If successful, the reform could signify a paradigm shift in how both industry professionals and consumers understand insurance guidance, paving a path for modernized, client-centered advice channels. The continued dialogue around these policy shifts marks essential progress in aligning industry capabilities with consumer expectation frameworks.

Published:Wednesday, 27th Nov 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

AFCA Criticises TAL for Unfair Termination of Income Protection Benefits

16 Nov 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled against TAL, a prominent life insurer, for terminating a policyholder's income protection benefits without prior notice. This decision underscores the critical importance of procedural fairness in the management of insurance claims. - read more

Actuaries Institute Highlights Financial Strain of Mental Illness on Insurance Systems

16 Nov 2025: Paige Estritori

The Actuaries Institute has issued a call for immediate action to address the escalating financial strain that mental illness is placing on Australia's insurance and compensation systems. This appeal underscores the pressing need to ensure the sustainability of the nation's financial safety net in the face of increasing mental health-related claims. - read more

Fitch Ratings Anticipates Continued Premium Increases in Australian Insurance Sector

16 Nov 2025: Paige Estritori

Fitch Ratings has projected that Australian insurers will continue to implement premium increases, with gross written premiums expected to grow by mid to high single digits. This forecast is driven by the need to offset rising claims and increased allowances for natural hazards. - read more

Surge in Cyber Insurance Adoption Among Australian Businesses

16 Nov 2025: Paige Estritori

In the past year, BizCover, a leading small business insurance provider, has reported an almost 50% rise in sales of cyber liability insurance. This significant uptick underscores the escalating awareness and concern among Australian businesses regarding cyber threats. - read more

IAG and Ag Guard Forge Partnership to Elevate Crop Insurance for Australian Farmers

14 Nov 2025: Paige Estritori

In a significant development for Australia's agricultural sector, Insurance Australia Group (IAG) has announced a strategic partnership with Ag Guard, a specialist rural underwriting agency. This collaboration will see Ag Guard managing the underwriting for IAG-owned CGU and WFI's crop insurance portfolios starting June next year. - read more

Click for more Insurance News

Business Insurance Articles

Why Every Business Needs Public Liability Insurance

Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more

The Importance of Public Liability Insurance in the Australian Labour Hire Industry

The Australian labour hire industry has seen a significant rise in recent years, and with this growth, comes new and unique risks that companies in this industry must be prepared to navigate. One such risk is the potential for accidents or damages to occur in the workplace, which is where public liability insurance comes in. This article will explore the definition of public liability insurance and why it is so important for labour hire companies in Australia. - read more

Reducing Your Risks: Public Liability Coverage Tips for Trade Professionals

For tradesmen and trade professionals, venturing into the world of business comes with its set of challenges and risks. Among the myriad of precautions to consider, one critical safeguard stands out for its ability to protect both the tradesperson and their clients: Public Liability Insurance. This form of coverage is not just a safety net; it is a cornerstone of a responsible business practice within the trade industry. - read more

Understanding the Key Factors Influencing Your Liability Insurance Premiums

Liability insurance is a form of coverage that protects businesses against claims resulting from injuries and damage to people or property. It provides crucial peace of mind, ensuring that your business is shielded from potentially devastating financial losses due to lawsuits or claims against it. - read more

Q&A: Common Questions Australian Business Owners Have About Public Liability Insurance

Public liability insurance is a crucial aspect of managing risk for businesses in Australia. This type of insurance covers costs associated with claims made against a business for property damage or personal injury caused during business operations. - read more

Start Here !

Knowledgebase

Insurance Deductible:
the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.