Australian Financial Complaints Authority publishes updated and new approaches for general insurance complaints on non-disclosure and misrepresentation

The Australian Financial Complaints Authority has published two Approach documents setting out how it will assess certain general insurance complaints, including an updated approach on non-disclosure and misrepresentation and a new approach on the duty to take reasonable care not to make a misrepresentation. The updated Approach to non-disclosure and misrepresentation reflects legislative changes made since the previous version, including amendments to the Insurance Contracts Act 1984 that took effect in 2021. The new Approach explains how AFCA will consider complaints involving the duty to take reasonable care not to make a misrepresentation, and applies to complaints about general insurance policies that are consumer insurance contracts. Both Approaches are available on AFCA’s website together with a related consultation feedback report.