Australia drives insurance reviews with $20m fines on compliance breaches

Recent court rulings also indicate a trend toward non-indemnification.

Australia’s surge in regulatory enforcement is prompting insurers and policyholders to reassess coverage for fines and penalties, WTW said. 

In H1 2024 alone, over $20.59m (A$32.2m) in penalties were imposed, targeting corporate misconduct across greenwashing, financial oversight, and AML/CTF compliance. 

Whilst Directors & Officers and statutory liability policies may offer some protection, legal prohibitions—particularly under the Corporations Act and new FAR regime—restrict coverage for wilful breaches. 

Recent court rulings also indicate a trend toward non-indemnification to uphold deterrence, presenting both risks and clarity challenges for the insurance sector.