Class Action Update - Section 33ZF – Not as broad a power as you might think

The Australian Financial Complaints Authority has published new guidance clarifying how insurers must handle claims, including strict timeframes and expanded compensation rules. Insurers now face potential liability beyond policy limits for unreasonable delays, and may be required to compensate claimants for non-financial losses. With storm season approaching and complaint volumes rising, these changes create significant operational and financial pressure on the insurance industry.

Data centres have become critical infrastructure assets in Australia's digital economy, attracting significant investment while facing mounting regulatory scrutiny over energy demands and infrastructure costs. As these facilities expand to meet AI-driven computing needs, they present complex insurance challenges spanning climate exposure, business interruption risk, and cyber vulnerabilities that require careful risk management strategies.

ASIC's Report 838 reveals significant transparency gaps in motor vehicle insurance premium communications, finding that renewal documents often fail to explain price changes adequately and that over 30% of consumers who contacted their insurer successfully negotiated lower premiums. The report establishes clear expectations for better practice in pricing disclosures and signals continued regulatory scrutiny of insurance pricing practices.

Since the guide was first published in March 2026, significant developments have emerged across the medical, sporting, regulatory and litigation landscape.

Asia-Pacific data centre expansion is creating unprecedented insurance challenges as rapid infrastructure growth strains regional water and power resources. Could intensive resource consumption by data centres generate environmental liability claims from affected communities and regulators? And are traditional property insurance models adequately capturing the contingent business interruption risks created by concentrated digital infrastructure dependencies?

It pays to understand the basis upon which your income protection or TPD claim was declined.

Law firms, real estate agents, property developers, conveyancers, accountants, trust and company service providers and precious commodities dealers (Tranche 2 entities), will need to comply with reporting entity obligations under the Anti-Money Laundering/ Counter-Terrorism Financing 2006 (Cth) (AML/CTF Act) from 1 July 2026. They will also need to enrol with AUSTRAC by 29 June 2026.

Special counsel Jess Byrne reflects on her decade-long career progression at Cooper Grace Ward, from law clerk to her current role in the insurance team. She discusses her work in workers' compensation and CTP matters, highlighting the diverse client base and advocacy opportunities that define her practice.

If passed, the new legislation will have a significant impact on insurers managing historic child abuse claims in NSW.

Reinsurance treaties often employ general language and avoid complicated drafting. A recent decision demonstrates the differences in opinion that may arise between reinsurers and cedants, and the risks faced by reinsurers in relying on vague terminology and appeals to common industry understandings.