Truck Insurance Online :: News
SHARE

Share this news item!

ASIC Considers Action as Professional Indemnity Insurance Transparency Falls Short

ASIC Considers Action as Professional Indemnity Insurance Transparency Falls Short

ASIC Considers Action as Professional Indemnity Insurance Transparency Falls Short?w=400
The Australian Securities and Investments Commission (ASIC) has voiced apprehension about the transparency of professional indemnity (PI) insurance amongst holders of the Australian Financial Services Licence (AFSLs).
This concern arises from a recent market overview conducted to analyze PI insurance for AFSLs offering personal advice to retail clients.

The market study revealed two primary issues: the lack of transparency in PI coverage and the extended durations required for claims resolution. In response, ASIC is exploring potential measures to address these challenges. Jared Timms, a partner at Howden Broking, emphasized the critical role of brokers in ensuring comprehensive communication with underwriters about the client's services. Timms advised against focusing solely on policy cost, noting that working with local carriers might streamline claims handling.

Since 2020, ASIC has observed a notable decline in the number of AFSLs experiencing PI-related compliance issues, including a decrease in AFSLs seeking waivers for PI requirements. The review also discovered market enhancements such as increased supply, competitive dynamics, premium reductions, and a return to profitability, signifying a recovery since the Hayne Royal Commission-induced exodus in 2019.

Despite these improvements, a Financial Services Council green paper recently critiqued ASIC's oversight on AFSL PI coverage.

The finality of PI claims and the ambiguity surrounding insurance coverage are pivotal issues for the financial services sector. Inadequate PI insurance can leave AFSLs and their clients vulnerable to financial risk, undermining trust in the financial advice industry. For consumers, clear and reliable PI coverage ensures accountability and protection, whereas for AFSLs, it represents a safeguard against claims-related financial duress.

Looking forward, ASIC's initiatives to enhance transparency and oversight, alongside evolving PI insurance market conditions, could herald substantial changes in the regulatory landscape. Expert commentary implies that aligning PI policies with client needs will remain crucial. Concurrently, the introduction of an updated Financial Advisers Register data set, from 15 August 2025, signals a strengthened compliance framework, demanding accuracy in recording adviser qualifications and pathways.

AFSLs are now mandated to update ASIC on any discrepancies within 30 business days to sidestep penalties. ASIC's spot checks have highlighted inaccuracies in the registration of financial advisers, leading to warnings and reprimands. Such compliance measures aim to uphold the regulatory integrity of AFSL operations.

Published:Tuesday, 12th Aug 2025
Source: Paige Estritori

Share this news item:

Insurance News

ASIC Considers Action as Professional Indemnity Insurance Transparency Falls Short ASIC Considers Action as Professional Indemnity Insurance Transparency Falls Short
12 Aug 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has voiced apprehension about the transparency of professional indemnity (PI) insurance amongst holders of the Australian Financial Services Licence (AFSLs). This concern arises from a recent market overview conducted to analyze PI insurance for AFSLs offering personal advice to retail clients. - read more
Traveller Triumphs in Insurance Dispute Over Unexpected Medical Detour Traveller Triumphs in Insurance Dispute Over Unexpected Medical Detour
11 Aug 2025: Paige Estritori

A savvy traveller has successfully challenged an insurance decision after having to make an impromptu stay in London due to a medical emergency. This came after the man needed urgent medical attention following a cat bite he sustained in Albania, which sent him to the UK capital for essential treatment. - read more
Revolutionising Life Insurance: Digital PMARs and Next-Gen Underwriting Revolutionising Life Insurance: Digital PMARs and Next-Gen Underwriting
11 Aug 2025: Paige Estritori

In the age of instant digital services, where everything from basic necessities to luxury items can be delivered in a blink, the life insurance sector in Australia is poised for a transformative change. Historically plagued by lengthy processing times, the sector faces a persistent underinsurance gap, with over a million Australians lacking adequate life protection. The introduction of a digital Personal Medical Attendant Report (PMAR) by Acenda, formerly MLC Life, marks a significant stride towards addressing this challenge. - read more
Victorian Court Approves $34 Million Add-On Insurance Settlement Victorian Court Approves $34 Million Add-On Insurance Settlement
08 Aug 2025: Paige Estritori

A Victorian court has ratified a $34 million settlement in a class action involving add-on insurance products sold by Suncorp. This settlement culminates the legal proceedings surrounding alleged unlawful sales practices. - read more
Study Bolsters Call to Eliminate Insurance Taxes Study Bolsters Call to Eliminate Insurance Taxes
07 Aug 2025: Paige Estritori

Recent research from Victoria University has provided new insights supporting the proposal to abolish insurance taxes in Australia. The study, conducted by Jason Nassios and James Giesecke, examined the effects of varying rates on four primary taxes: personal income tax, goods and services tax (GST), stamp duties, and insurance duties. Unlike previous studies, this research assessed the economic impacts of these taxes as their rates fluctuated, rather than analyzing them at static levels. - read more


Truck Insurance Articles

The Top Mistakes to Avoid When Purchasing Truck Insurance The Top Mistakes to Avoid When Purchasing Truck Insurance
Truck insurance is a necessary expense for any business that relies on commercial vehicles. It is crucial to protect your business from any financial loss that could result from an accident, theft or any other unforeseen circumstances. - read more
What to Do If You Need to Make a Claim on Your Truck Insurance What to Do If You Need to Make a Claim on Your Truck Insurance
Truck insurance is a critical aspect of owning a truck, but it can be overwhelming when you need to make a claim. Whether you're an owner-operator or a fleet manager, knowing what to do in case of an accident or damage can make a significant difference in the outcome of your claim. - read more
Essential Coverage: What Every Australian Truck Operator Should Have Insured Essential Coverage: What Every Australian Truck Operator Should Have Insured
When it comes to the open road, Australian truck operators know that preparedness is key. Not only does this refer to the maintenance of the vehicle itself, but also the insurance that protects the operator's livelihood. Adequate truck insurance acts as a safeguard, shielding owners from the financial repercussions of unexpected incidents. - read more
5 Tips for Finding the Most Cost-Effective Truck Insurance in Australia 5 Tips for Finding the Most Cost-Effective Truck Insurance in Australia
For truck owners and operators traversing the unique and varied landscapes of Australia, securing the right insurance isn't just a regulatory necessity—it's a vital component of their business's livelihood. The heavy haulage industry faces distinctive challenges and risks, from navigating narrow country roads to complying with strict transport regulations, each requiring tailored insurance solutions. Understanding the critical balance between comprehensive coverage and cost-effectiveness can mark the difference between business stability and financial vulnerability in an already competitive market. - read more
What factors affect your truck insurance premiums? What factors affect your truck insurance premiums?
When it comes to insuring your truck, there are many factors that go into determining your insurance premium. Insurance companies consider a wide range of factors when determining the cost of coverage, including the make and model of the truck, the age and driving history of the driver, and the level of coverage you choose. - read more


Your free Truck insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Exclusion:
Specific conditions or circumstances for which the insurance policy does not provide coverage.

Quick Links: | Truck Insurance | Heavy Vehicle Insurance | Commercial Truck Insurance | Truck Fleet Insurance | Owner Driver Truck Insurance | Insure My Truck | Best Truck Insurance Australia | Truck Insurance Quote | Bulk Haulage Insurance | Tipper Truck Insurance | Prime Mover Insurance
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 finance products. We do not recommend any specific 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, qualified intermediaries with whom you can 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 part 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.