Insurance - PricewaterhouseCoopers

Conduct and disclosure standards
FSR Act requirements that relate to service standards include the following:
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Insurers must confirm, electronically or in writing, the issue, renewal, redemption
or variation of policies within a reasonable time frame.
Insurers must offer a 14-day “cooling-off” period during which customers have
the right of return. This period starts on the earlier of the following dates: the date
the confirmation requirements have been met, or the end of the fifth day after
the product is issued or sold to the consumer. For risk insurance products, the
amount refunded can be reduced in proportion to the period that has passed
before the right of return is exercised.
Consumers must be given the option to register a “no contact, no call” request,
similar to marketing consents required under the Privacy Act 1988.
As AFSL holders, insurers are required to maintain a register of all authorised
representatives and ensure that their representatives provide services honestly,
efficiently and fairly. Other requirements of the FSR Act relating to policyholder
protection include:
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compliance measures that are consistent with Australian Standard 3806 on
compliance programs (this is the minimum standard, not the only way);
internal procedures for dealing with complaints. These must meet the standards
set out in ASIC’s Policy Statement 165; and
procedures for keeping client money in a trust account that is separate from the
licensee’s or representative’s own account.
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Policyholder
protection