Future Insurer #39
Welcome back to Future Insurer!
AI and digital assets have dominated the regulatory agenda over the past fortnight, with ASIC and APRA both sharpening expectations for insurers. From crypto licensing clarity to growing limits on AI risk transfer, there’s plenty here for insurers, startups and advisers to unpack.
If you’re new here—welcome aboard! 👋
This fortnightly newsletter shares the top #insurtech and #insurance stories of the past two weeks straight to your inbox.
Like what you read? Hit Subscribe so you never miss a beat.
Now, let’s dive into this edition’s top picks…
IN THIS EDITION’S NEWS
₿ ASIC releases digital asset licensing roadmap
ASIC has published its 18‑month roadmap for implementing Australia’s new digital asset regulatory regime following passage of the Corporations Amendment (Digital Assets Framework) Act 2026. The roadmap confirms that digital asset platforms and tokenised custody providers will be brought into the AFSL regime from 9 April 2027, with industry consultation, new regulatory guidance and operational standards to be finalised over the next year. Notably, ASIC has confirmed that its existing no‑action position expires in June 2026, meaning affected businesses must review compliance very soon.
Recommended by LinkedIn
🤖 AI and 'LLMjacking' exclusions on the way
Insurers are increasingly moving to clarify or limit exposure to artificial intelligence through new policy exclusions and endorsements, particularly across D&O, E&O and professional indemnity lines. Globally, several carriers have introduced broad AI exclusions in response to rising litigation and regulatory risk linked to AI, raising concerns about coverage gaps and future disputes. While some markets are experimenting with affirmative AI cover, the overall direction of travel suggests AI risk is rapidly shifting from “silent” exposure to a clearly negotiated underwriting issue.
🛡️ APRA warns insurers on AI governance
APRA has written to all regulated insurers on its expectations relating to AI governance, risk management and operational resilience following a targeted review conducted in late 2025. The regulator warned that AI adoption is accelerating faster than controls, with boards lacking sufficient technical literacy to effectively challenge management and an over‑reliance on vendor assurances. APRA also flagged concentration risk in AI providers and heightened cyber exposure from “frontier” models, making clear it expects boards and executives to lift AI oversight within existing prudential frameworks without waiting for new rules.
✈️ New travel insurer enters the market
Europ Assistance Australia and New Zealand has obtained its general insurer authorisation from APRA, meaning there's a new insurer on the market! Congratulations to all involved on this milestone giving more choice to consumers when protecting their travels.
🧬 Genetic Testing
Future Insurer features in The NSW Law Society Journal on new laws banning compulsory disclosure and use of genetic testing information in life insurance.
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.
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.
