AFCA publishes three new and updated Approach papers

On 10 August 2026 the Australian Financial Complaints Authority published three Approach papers: an updated Approach to non-financial loss, and new Approaches to general insurance claims handling and uninsured motorist complaints. Approach papers set out how AFCA assesses particular issues and complaint types in reaching its determinations, and are intended to help consumers, small businesses and financial firms understand AFCA's processes, though AFCA describes them as reflecting established practice rather than a change in how complaints are managed.

The updated non-financial loss Approach explains the kinds of avoidable impacts that can result in a compensation award, sets out a table AFCA uses to assess severity and duration of harm, and significantly expands the case studies to cover scams, financial hardship, insurance, privacy and family violence complaints. The new general insurance claims handling Approach consolidates AFCA's approach to claim delays, cash settlements in home claims and the use of expert evidence when a claim is denied, reflecting that claims handling is the most complained about issue in general insurance complaints at AFCA. The new uninsured motorist Approach clarifies AFCA's jurisdiction over uninsured motorist complaints, how liability is assessed, and the remedies available.

None of the three Approaches change AFCA's Rules or alter the law; they are guidance documents describing AFCA's existing decision-making practice. Financial firms within AFCA's jurisdiction, including general insurers and claims handling staff, may find it useful to compare current internal dispute resolution practices against the detail set out in these papers.