This article discusses why some insurers include a Product Disclosure Statement stating they are not independent, impartial, or unbiased, and when such statements are legally required.
Question: Our insurance Product Disclosure Statement says, “we are not independent, impartial, or unbiased.” Is this usual?
The following information is included in our insurance Product Disclosure Statement: “we are not independent, impartial, or unbiased.” Is this a usual inclusion? Does it apply to all insurers?
Answer: This does not apply to all insurers, but it is common.
The statement “we are not independent, impartial, or unbiased” is a disclosure required under financial services law when a financial services licensee (such as an insurer or broker) does not meet the criteria for independence as defined by ASIC.
This does not apply to all insurers, but it is common. Many insurers and brokers are required to make this disclosure because they may receive commissions, be part of a corporate group, or have other arrangements that could influence the advice or products they offer.
ASIC’s Information Sheet 291 explains these obligations in more detail and outlines the circumstances under which a provider must disclose that they are not independent. You can find that guide here: Example lack of independence disclosure statement with annotations.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the October 2025 edition of The VIC Strata Magazine.
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