Insurance claims handling and settling

Who did this affect?

Businesses or representatives that fall into the following categories must hold an AFSL with a claims handling authorisation:

• Insurers;
• Insurance Fulfilment Providers;
• Claims Managers;
• Claimant Intermediaries;
• Insurance Brokers; and
• Financial Advisers (subject to exemptions).

It is important to note that you are not required to hold an AFSL if you are merely giving a recommendation or opinion which is reasonably necessary as part of the handling and settling process as this is not considered providing financial product advice. However, if you recommend an insurance product or provide an opinion on how a settlement amount is to be structured, then you will be providing financial product advice, and therefore require an AFSL.