Welcome to another issue of Future Insurer! This edition is jam packed with lots of exciting #InsurTech news, from crypto through to regulatory updates.
If you’re new here, welcome! 👋 This fortnightly newsletter highlights the most intriguing #insurtech and #insurance developments from the past two weeks. Be sure to hit subscribe to stay updated!
Now, let’s dive into this edition’s top picks…
In this edition’s news:
🌐Block Earner did not provide regulated services
In an earlier edition of Future Insurer, we covered the interesting judgment of the Federal Court that relieved Block Earner of liability to pay penalties for unlicensed financial services. In a turn of events, following ASIC’s appeal , the Full Federal Court has found that Block Earner did not need an Australian Financial Services Licence to offer its digital asset-related Block Earner product at all. Companies looking at insuring digital asset providers might be interested in this judgment.
🛣️New road ahead for motor association insurers?
Insurance Australia Group has inked a $1.35 bn deal with RAC WA to purchase its insurance business and enter into a 20-year exclusive distribution agreement for RAC branded home, motor and niche insurance products. This comprises $400 million for IAG’s acquisition of 100% of the RACI shares equivalent to the expected net tangible asset value at time of completion and upfront payment of $950 million for the aforementioned exclusive distribution and brand licensing agreement. It follows IAG purchase of RACQ Insurance announced in November last year.
☂️ Digital asset insurer launches in Australia
Digital asset insurer Qubit Underwriting has launched in Australia, offering Lloyd’s capacity to clients in the region. We expect to see more insurers in this space as distinct regulation of digital asset providers comes to fruition in Australia. Find out more about Qubit.
🚩A fair penalty? No unfair contract terms but penalty still imposed
HCF Life Insurance Company has been ordered to pay a pecuniary penalty of $750,000 following the Court’s finding that a pre-existing condition term in HCF Life’s insurance policies was liable to mislead consumers. In an earlier judgment covered by Future Insurer, the Court found that the term was not an unfair term despite being potentially inconsistent with the Insurance Contracts Act 1984 (Cth).
🚀Lloyd’s Lab Accelerator Cohort 15 applications open!
Lloyd’s Lab has announced applications are open for Cohort 15! The 10-week InsurTech program provides InsurTechs with direct access to Lloyd’s market experts and tailored support. Apply now!
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Tim Chan is an insurance & insurtech lawyer at global law firm Norton Rose Fulbright and Founder of The InsurTech Lawyer blog. He regularly advises insurers and startups on emerging legal issues affecting the industry. Follow Tim on Twitter: @timinsydney
Disclaimer: This newsletter provides general information only and does not constitute legal, financial, or other professional advice. It does not address the circumstances of any particular individual or entity. You should seek your own professional advice.
