Implications for Brokers

New laws commence this October that substantially change the regulation of retail insurance and which will give rise to new legal and professional obligations on you as a broker.

We've recently reviewed our products to align with these regulatory changes, and to reflect some product changes we recently agreed with Steadfast.

For new and renewed policies that take effect from 1 October 2021, the changes will include:

Updated PDSs and policy wordings for our Home and Contents, Motor Vehicle and Landlord products;
Target Market Determinations for each of those products; and
A new “Duty to answer honestly” that replaces the Duty of Disclosure.

To help you consider the implications of these changes for your business and your clients, and to highlight some of the new responsibilities and obligations you will have as they relate to our products, we have prepared the 'Regulatory Change – Implications for Brokers' document. This is an important document, please read it in detail. Similar obligations will apply for all retail insurance products.

Regulatory Change – Implications for Brokers

Key Points

You need to assist your clients to comply with the new duty to answer honestly.
You need to take reasonable steps to ensure your clients only purchases, renews or varies a product if the client is likely to be in the target market for the product, as stated in the TMD.
We have identified some cohorts of clients who may not be in the target market for our products.
Your conduct needs to be consistent with the target market determination for the product.
You need to comply with your reporting obligations set out in the target market determination.