The Australian Financial Complaints Authority will provide more clarity on how decisions are reached in claims handling and misrepresentation disputes.

The authority plans to release new and amended approach documents next financial year and is seeking feedback on the schedule, and whether other dispute areas should be prioritised. 

It has developed a collection of documents that is updated each year to help consumers, small businesses and financial companies understand its approach to certain issues and how it reaches decisions. “The approach documents provide practical information on how AFCA will assess and determine complaints and enhance AFCA’s transparency, consistency and efficiency,” it says. 

In general insurance, AFCA has proposed documents on claims handling and on the duty to take reasonable care not to make a misrepresentation. 

It is also looking to amend its non-disclosure and misrepresentation document. 

Two approach documents around misrepresentation are also planned for the life insurance (non superannuation) jurisdiction. 

In superannuation, it plans a document on sections 29 (6) and (7) of the Insurance Contracts Act, and amendments to approaches on delayed insurance claims and death benefits. 

“We are committed to developing new or updating existing approach documents and consulting with relevant AFCA stakeholders including member firms, industry groups, consumer groups and regulators,” the ombudsman says. 

The authority has this year added documents related to banking and finance, plus investment and advice, and will publish consultation feedback and final approach documents on non-financial loss claims, uninsured motorist complaints and disability discrimination and insurance. 

Feedback on next financial year’s plan is due by Thursday next week, with the final schedule to be published by the end of the month. More information is available here.

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