What is an AFCA Approach document?
AFCA’s Approach documents help complainants and financial firms better understand how AFCA might approach some common issues and complaint types, and how we reach decisions. We publish our Approach documents on our publications page.
What is the purpose of AFCA’s new Approach to the duty to take reasonable care not to make a misrepresentation (general insurance)?
The purpose of this new Approach is to explain how AFCA will consider complaints about the duty of firms to take reasonable care not to make a misrepresentation in general insurance. This includes information about which general insurance contracts are covered by this duty and when it applies, and insurers’ and consumers’ obligations under the Insurance Contracts Act 1984 (the Act).
Why has AFCA revised the Approach to non-disclosure and misrepresentation (general insurance)?
The revised Approach includes minor clarifications to reflect legislative changes implemented since our previous Approach to non-disclosure and misrepresentation was published. These changes encompass legislative amendment to the Act that came into effect in 2021.
What is the consultation period for these Approach documents?
The consultation period runs from Wednesday, 6 November 2024, to Wednesday, 27 November 2024. Stakeholders are encouraged to provide their feedback within this timeframe.
What happens after the consultation period ends?
After the consultation period ends, AFCA will review all submissions and feedback received from stakeholders. We will publish a consultation response, outlining how stakeholder input has been considered. The final updated Approaches will be published on our website in December 2024 (subject to change), along with all non-confidential submissions.
Who can participate in the consultation?
The consultation is open to all stakeholders, including financial firms, consumer advocates, government agencies, regulators, industry associations and members of the public who have an interest in how general insurance complaints are handled by AFCA.
How can I submit my feedback or comments on the draft Approach documents?
The consultation period runs from Wednesday, 6 November 2024, to Wednesday, 27 November 2024. Stakeholders are encouraged to provide their feedback within this timeframe.
Will AFCA publish the feedback received during the consultation?
Yes, AFCA plans to publish a summary of the feedback received, along with our responses, on our website. This will ensure transparency in how we have addressed stakeholder concerns and suggestions.
Are submissions anonymous?
Your submission will be published on AFCA’s website unless you specify that a part or all of it is confidential.
You may choose to remain anonymous when making a written submission. However, if you decide to remain anonymous, we will not be able to contact you to discuss your submission should we need to.
Please refer to AFCA’s Privacy Policy for more on how we handle personal information.
How will the new and revised Approaches benefit financial firms and complainants?
The new and revised Approaches provide clearer guidance on AFCA’s complaint handling approach to certain complaint issues, leading to more predictable and consistent outcomes. This helps financial firms and complainants understand what to expect, potentially reducing the time and resources spent on resolving disputes.
Will these Approaches affect how general insurance complaints are currently handled by AFCA?
The new and revised Approaches are designed to explain existing processes rather than significantly alter them. They provide clearer guidance on how complaints are handled, which should lead to more consistent and predictable outcomes.
What should I do if I need more time to submit my feedback?
If you require an extension to submit your feedback, please contact AFCA as soon as possible during the consultation period.
Where can I find the draft Approach documents and other related materials?
The draft Approach documents, along with the consultation paper and key dates, are available on the consultation page. All relevant materials are accessible there for review.
What is the timeline for the finalisation and publication of the updated Approaches?
The final updated Approaches are expected to be published on the AFCA website in December 2024, following the completion of our feedback review process. You can find an overview of key dates on the consultation page.
More information and further questions
If you have further questions about the Approach documents or consultation, or need more information, please email consultation@afca.org.au.
