Risk Regulatory Update
/ASIC takes Westpac to court over allegations of junk credit insurance
The Australian Securities and Investments Commission (ASIC) is taking Westpac to court with allegations the bank sold almost 400 customers worthless credit insurance they did not want.
ASIC alleges that for a period in 2015, Westpac sold these products under false and misleading pretences by asserting it had a right to charge customers credit insurance premiums these customers were not liable to pay. ASIC says the debiting of these premiums was a failure of Westpac to provide efficient, fair and honest financial services.
APRA seeks consultation on life reinsurance market
The Australian Prudential Regulation Authority (APRA) has released a consultation package to deal with concerns regarding the increasing use of offshore reinsurance companies by Australian life insurance businesses. The concerns, APRA says, are increased relating to the group risk market.
The proposed updates seek to impose an aggregate limit on the exposure of life insurers to offshore reinsurers, which do not sit under APRA regulation. Any reinsurer that enters the Australian market and is an APRA-registered entity is not subject to the limits. Feedback can be submitted until 25 June 2021.
