Australian Financial Complaints Authority launches consultation on new life insurance complaint approaches for misrepresentation and non-disclosure

The Australian Financial Complaints Authority (AFCA) has invited stakeholder feedback on two new Approach documents setting out how it will assess key issues in life insurance complaints involving misrepresentation and non-disclosure. The draft approaches cover the duty to take reasonable care not to make a misrepresentation and AFCA’s approach to complaints involving the duty of disclosure and the requirement not to misrepresent. Both documents reflect legislative amendments to the Insurance Contracts Act that took effect in 2021 and apply to non-superannuation complaints under AFCA’s Rules. AFCA positions the Approach documents as guidance on what parties can expect from its processes, including how it applies legal principles, industry codes, regulatory guidance and good industry practice when investigating and deciding complaints. The consultation runs from 8 September to 10 October 2025. After the closing date, AFCA will consider submissions and respond to the feedback received.