The Australian Financial Complaints Authority (AFCA) aims to launch a new approaches document this year to give greater clarity around disclosure disputes.

AFCA has more than 30 approaches published on its website, but the document on disclosure and misrepresentation was last updated in 2020. In 2021 the duty of disclosure was abolished for consumer contracts, replaced with a duty to take reasonable care not to make a misrepresentation.

“We plan to develop, consult on, and ultimately issue an AFCA approach to the new duty in the second half of 2024,” Lead Ombudsman Insurance Emma Curtis told insuranceNEWS.com.au.

“The reason for doing so is that this is a question that can arise in a range of insurance complaints. An approach will provide greater clarity and transparency about how we deal with such matters.”

A recent AFCA ruling flagged a “serious lack of understanding” around the new duty by a major insurer.

See Analysis.