The Australian Securities & Investments Commission has remade its relief from certain retail client obligations under the Corporations Act 2001 for insurers and brokers where incidental retail cover is included within a wholesale insurance contract. The relief, previously scheduled to end on 16 August 2025, has been extended for a period of five years. The measure is intended to avoid wholesale business insurance products that only incidentally include retail cover being treated as subject to retail client requirements, reducing compliance costs that could otherwise be passed on to businesses. Incidental retail cover is described as retail cover provided to a wholesale client that is a minor, incidental and inseparable part of an otherwise wholesale insurance product, such as cover for employees’ personal effects within business property insurance. The relief remains subject to conditions aimed at ensuring the cover is genuinely incidental, including that it does not apply where the retail cover is offered at an optional expense or requires a separate decision to purchase; ASIC assessed the instrument as operating effectively and efficiently, and a May 2025 feedback process attracted one supportive submission. ASIC will continue to monitor the instrument’s appropriateness based on regulatory experience and stakeholder feedback.
Australian Securities & Investments Commission 2025-08-13
Australian Securities & Investments Commission extends incidental retail cover relief for insurers and brokers by five years
ASIC has extended its relief from certain retail client obligations under the Corporations Act 2001 for insurers and brokers, where incidental retail cover is included within a wholesale insurance contract, for five more years. This aims to reduce compliance costs. The relief is conditional, ensuring the retail cover is genuinely incidental. ASIC found the instrument effective and will continue to monitor its appropriateness.