ASIC introduces family violence exemption for insurer notices

3 October 2022

The Australian Securities and Investments Commission (ASIC) has announced it will allow exceptions for insurers to provide notifications in instances where it creates the risk of family violence.

Since the start of this year, insurers have been required to provide Cash Settlement Fact Sheets (CSFS) and transaction confirmation notifications to joint policyholders when a claim is cash settled.

ASIC says the changes aim to reduce the risk of family violence due to insurers providing the notifications to each policyholder.

Personal information, including a policyholder’s location, can be noted in CSFS forms, which the regulator says could “provide an opportunity for the perpetrator of violence to interfere with the cash settlement”.

ASIC says the measures look to aid the industry’s Code of Practice to help customers at risk of, or experiencing, family violence. Insurers will be required to keep records of why they believe a notification would lead to instances of violence for three years.

The Insurance Council of Australia (ICA), which appealed to have the relief set in place, welcomed the policy.

“This important development offers better protection for insurance customers who are survivors or in suspected family violence situations,” an ICA spokesperson said.

ASIC says the exemption is set to expire in 2027, pending a review near its end date.

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