Financial Markets Conduct (Conduct of Financial Institutions – QBE Insurance (Australia) Limited) Exemption Notice 2025

The Financial Markets Conduct (Conduct of Financial Institutions — QBE Insurance (Australia) Limited) Exemption Notice 2025 (Notice) exempts QBE Insurance (Australia) Limited (QBE), for 5 years from the requirements under the Financial Markets Conduct Act 2013 (as amended by the Financial Markets (Conduct of Financial Institutions) Amendment Act 2022) (the Act) to:

1. be licensed as a financial institution; and
2. establish, implement, maintain, and comply with an effective fair conduct programme, and make information about the fair conduct programme available.

The exemption applies to services in respect of certain in-force contract works, marine cargo and marine pleasurecraft policies and certain out-of-force policies (relevant policies).

The exemptions cease to apply to a contract works policy that is in force after three years and to a marine cargo or marine pleasurecraft policy that is in force after 12 months. Otherwise, the exemptions apply for five years.

Conditions require QBE to:

• ensure that all dealings or interactions with a policyholder are handled in a manner that treats the policyholder fairly
• give policyholders information on the exemption and on how to make a claim or lodge a complaint.

The key reasons for granting the exemption (as set out in full in the Statement of Reasons in the Notice) are:

• QBE operates primarily as a commercial insurer in New Zealand and its products are distributed by insurance intermediaries and generally not designed for or targeted to consumers
• QBE’s consumer business in New Zealand is in run-off and it has a low level of consumer insurance contracts that are in force and those contracts are expected to be run-off within three years. It also has out-of-force consumer insurance contracts where there is a low probability of late claims or complaints under those contracts
• in view of QBE’s limited consumer insurance business, the costs of being licensed and complying with the duties to establish, implement, maintain, and comply with an effective fair conduct programme to meet the fair conduct principle under the Act are likely to outweigh the benefits for those consumers 
• QBE will be required to ensure that all dealings or interactions with a policyholder in connection with a relevant policy are handled in a manner that treats the policyholder fairly and to give policyholders information on the exemption and about how to make a claim or lodge a complaint. This will enable policyholders to make informed decisions about and confidently exercise their rights under those policies
• As such, the FMA is satisfied that granting the exemptions is desirable in order to promote the purposes of the Act, specifically to promote the confident and informed participation of businesses, and consumers in the financial markets and to avoid unnecessary compliance costs
• Given the exemptions will only apply for a short duration for relevant policies that are in force, and the low level of consumer insurance business that is in run-off, the FMA is satisfied that the exemptions are not broader than is reasonably necessary to address the matters to which they relate.

Download Financial Markets Conduct (Conduct of Financial Institutions – QBE Insurance (Australia) Limited) Exemption Notice 2025