The Australian Securities and Investments Commission (ASIC) has granted an exemption to two life insurance comparators that allows one to act as an authorised representative.

It approved the application from Lifebroker to appoint comparethemarket.com.au as an authorised representative “because we considered that it represented a relatively minor extension of the existing policy of granting relief to insurance providers to appoint another licensee as an authorised representative”.

“The relief applies where the licensee appointed as an authorised representative does not hold any authorisation in relation to the life insurance products under its licence,” ASIC said.

The regulator says parties must produce a written agreement covering the services.

“We were satisfied the risk of consumer confusion about who was responsible for the provision of services was minimised by the inclusion of conditions ensuring adequate disclosure.

“Further, the consumer was protected from the risk of loss by ensuring the licensee is responsible for the conduct of the authorised representative, as well as a requirement that they hold adequate professional indemnity insurance.”

ASIC requires the authorised representative to maintain professional indemnity cover of at least $10 million for any one event.