AU Sectors
Insurance
AI Governance for Australian Insurers
APRA prudential supervision, ASIC product design and distribution obligations, AFCA complaint jurisdiction, and pricing fairness requirements for insurance AI.
Key governance obligations
APRA Model Risk
AI pricing and underwriting models require validation, documentation, and monitoring under APRA model risk expectations.
ASIC DDO
Product design and distribution obligations — AI-driven pricing must not systematically exclude or overcharge target market customers.
Pricing Fairness
ASIC has flagged loyalty pricing penalties from algorithmic pricing as a conduct concern requiring remediation.
AFCA Explainability
Claims decisions influenced by AI must be explainable to policyholders — AFCA has jurisdiction over disputes about AI claims outcomes.
Key Regulators
APRA
Prudential supervision — CPS 230, CPG 234, model risk
ASIC
Conduct regulation — DDO, pricing fairness, RG 271
AFCA
Dispute resolution — jurisdiction over AI claims decisions
OAIC
Privacy Act obligations for policyholder data