The Australian Financial Complaints Authority has published two new External Dispute Resolution Response Guides covering complaints under Sections 29(6) and 29(7) of the Insurance Contracts Act 1984. The guides are intended to help financial firms prepare submissions in disputes about whether an insurer or superannuation trustee has lawfully varied a life insurance contract following a misrepresentation. AFCA said these complaints can arise in both retail life insurance and superannuation. Sections 29(6) and 29(7) govern when and how insurers and superannuation trustees may vary a life insurance contract, including by changing terms to those that would otherwise have applied, such as retrospectively reducing cover after an event linked to an undisclosed pre-existing condition. AFCA said it has seen an increase in disputes alleging that firms did not meet those statutory requirements. For these complaints, the guides set out the material AFCA expects from firms, which often includes evidence that at least two other insurers or trustees would have varied contracts in a similar way and the underwriting guidelines that applied when the contract was originally agreed. AFCA said it issued the guides in response to higher complaint volumes in this area. The aim is to support more thorough firm submissions and reduce delays in complaint handling.
Australian Financial Complaints Authority2026-07-03
Australian Financial Complaints Authority publishes two response guides for Insurance Contracts Act life insurance variation complaints
The Australian Financial Complaints Authority has issued two new response guides for complaints under Sections 29(6) and 29(7) of the Insurance Contracts Act 1984. They cover disputes over changes to life insurance contracts after misrepresentation and apply across retail life insurance and superannuation. AFCA said the guides respond to rising complaint volumes and set out the evidence it expects from firms in these cases.