Australia Post

Insurers are classified into three broad categories; general, life and health depending on the insurance products and services they sell. General insurers sell cover for everyday assets such as your car or home or personal cover such as the medical costs associated with an accident when travelling.

General and life insurers are regulated in Australia by an independent government agency the Australian Securities and Investments Commission (ASIC) and a government authority the Australian Prudential Regulation Authority (APRA). Both these authorities are responsible to the Treasurer in the Commonwealth Government. Health insurers are regulated by the Private Health Insurance Administration Council (PHIAC).

APRA supervises general insurers under the Insurance Act 1973 and sets standards and guidance, including the level of capital adequacy each should retain for meeting its claims and liabilities.

As part of the Commonwealth Government's financial system guarantees, many general insurance policyholders are given a level of protection should an APRA regulated general insurer collapse with outstanding claims owed. Whilst the Australian Competition and Consumer Commission (ACCC) administers the Trade Practices Act 1974 and promotes fair trade in the community, it is ASIC that is directly responsible for applying financial services laws, including insurance, for the benefit of consumers. Legislation administered by ASIC includes the Corporations Act 2001 the Insurance Contracts Act 1984 and the Life Insurance Act 1995. ASIC has powers to investigate breaches and institute civil or criminal proceedings under these Acts.

The Financial Ombudsman Services (FOS) independently and impartially resolves disputes between consumers, including some small businesses, and participating financial services providers. FOS independent dispute resolution processes cover complaints about financial services including banking, credit, loans, general insurance, life insurance, financial planning, investments, stock broking, managed funds and pooled superannuation trusts.

Like other companies in Australia, insurers must comply with the Privacy Act 1988.

The peak body for the general insurance industry is the Insurance Council of Australia. The Council's members include insurance and reinsurance companies as well as Lloyds of London.

This document is intended to provide general information about financial matters only, and has been prepared by the Australian Postal Corporation without taking into account any particular person's objectives, financial situation or needs. You should, before acting on this information, consider the appropriateness of this information having regard to your personal objectives, financial situation or needs. You should obtain independent financial advice specific to your situation before making any financial investment decisions. While due care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information. Except where under statute liability cannot be excluded, no liability (whether arising in negligence or otherwise) is accepted by the Australian Postal Corporation for any error or omission or for any loss caused to any person acting on the information in this publication.