Public adjusters in Australia: how the rules work

In Australia, a business that represents insured people in a general insurance claim in return for a benefit is a "claimant intermediary," and ASIC says it must hold an Australian financial services (AFS) licence with a claims handling authorisation, unless an exemption applies.

What the job is called here

The legal term is "claimant intermediary." ASIC gives the example of a "claims assistance provider" that does the claim work for home insurance clients and advocates for them. ASIC says that business must hold an AFS licence.

Note that ASIC uses "loss assessor" for a person who assesses damage for the insurer. ASIC lists loss assessors as an example of people who may not need their own licence.

Who regulates it

The Australian Securities and Investments Commission (ASIC) licenses financial services businesses. ASIC says claims handling and settling became a financial service under Schedule 7 of the Financial Sector Reform (Hayne Royal Commission Response) Act 2020.

Is a licence required

ASIC INFO 253 says that, from 1 January 2022, some groups must hold an AFS licence with a claims handling authorisation. One group is the claimant intermediary. ASIC defines this as a business that represents insured people in pursuing a general insurance claim, in return for any benefit.

Other groups that need the authorisation include insurers, insurance claims managers and some insurance fulfilment providers. ASIC says a person who acts for an insurer cannot also represent the insured person on the same claim.

Some people are exempt from being claimant intermediaries. ASIC gives examples such as insurance brokers, accountants and property managers.

Fees

ASIC INFO 253 does not set a fee cap for claimant intermediaries. Its example business charges 20% of any cash settlement on a "no-win no-fee" basis. ASIC says a claimant intermediary must give you a Financial Services Guide (FSG). Read it before you sign.

How to check a licence (official register link)

Use the ASIC Professional registers search. ASIC says it lets you find a person or organisation registered or licensed with ASIC to provide a service.

What to do if there is no regime

Australia has a regime. If you have a complaint about an insurer or a licensed financial firm, contact the Australian Financial Complaints Authority (AFCA). AFCA says its service is free, fair and independent.

This is general information, not legal advice; confirm the current rules with ASIC.