2.2 The Guidelines are issued under Part 9, Division 9.2, section 9.16 of the Act, to provide the regulatory framework for issuing of third-party policies by licensed insurers.
2.3 These Guidelines are principles-based. They articulate a set of objectives for issuing of third-party policies and expectations for standards of market practice for insurers. The Authority’s adoption of principles-based regulation of market practice is intended to:
(a) encourage flexibility and innovation in the delivery of services to third-party insurance customers
(b) promote a competitive market for all insurers and encourage insurers to act in good faith when interacting with customers.
2.4 Insurers’ market practice, including distribution arrangements, must align with these Guidelines and not contravene these Guidelines.
2.5 To further assist compliance with these Guidelines, the Authority may publish practice notes.