What trends are changing the Australian insurance regulatory landscape?

Global law firm Clyde & Co expects the Australian insurance regulatory landscape to remain dynamic in 2023 as the world adjusts to the “new normal” post-COVID-19 pandemic.

In its Australian Insurance Regulatory Landscape 2023 report, Clyde & Co said it expects insurers, reinsurers, and intermediaries to face challenges and opportunities that could help them get ahead of the game.

Insurance regulatory key trends for 2023

Clyde & Co found the following trends after analysing changes in the Australian insurance regulatory landscape:

• Australian regulators are shifting from monitoring the implementation of post-Financial Services Royal Commission regulatory reform to scrutinising compliance continuously;
• The Australian Prudential Regulation Authority (APRA) has focused on organisational risk and the financial accountability regime to increase the responsibility and accountability of senior executives at APRA-regulated insurers and reinsurers;
• Regulators continue to focus on climate change, anticipating a new climate-related finance disclosure framework and targeting “greenwashing”; and
• The high-profile data breaches and the resulting impact on the customers of Optus and Medibank Private last year have resulted in a renewed focus on cyber security and storing and using data.

Clyde & Co expects the Australian insurance industry to adapt to emerging trends in the financial crime area.

“There has been a significant increase in the use of autonomous sanctions, which will require a greater focus on potential sanctions risks,” the global law firm said. “The modern slavery regime is also under review in Australia, and companies will need to be ready to adapt,”