On 4 April 2023, ASIC commenced its first proceeding against an insurer under the unfair contract terms regime. The term in question is contained in a home and contents insurance contract and concerns an obligation on the insured to notify the insurer if “anything changes about your home or contents”.
The allegedly unfair contract term is contained in approximately 1,377,900 insurance contracts issued by the insurer since the regime came into effect. Among other things, ASIC seeks orders directing the insurer to reassess any claim made by a consumer that it reduced or refused to pay by relying on the term in question. Head of Financial Lines Cain Jackson and partners Suzanne Craig, Edward O’Brien, Dean Pinto and Raisa Conchin explain the implications of this regulatory development for insurers.