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.
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,”