What constitutes adequate insurance to participate in the Consumer Data Right regime?
The insurance arrangements an accredited person must meet to maintain adequate insurance or a comparable guarantee are not prescribed because what will be adequate will depend on a range of factors which may be unique to the insured.
An accredited person must have adequate insurance, or a comparable guarantee, relevant to the nature and extent of their management of CDR data. The object of this requirement is to reduce the risk of CDR consumers not being properly compensated due to an accredited person’s lack of financial resources.
A list of matters to be taken into account when considering adequate insurance arrangements is set out in our Supplementary accreditation guidelines: Insurance.
An applicant for accreditation must provide a written statement, signed by an authorised representative, explaining the basis on which it has determined that the comparable guarantee or insurance policy or policies it holds are adequate to cover risks it may be exposed to in connection with the management of CDR data.
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