From 1 November, the revised rules require insurers to set up product committees led by their principal executive, conduct regular product reviews and strengthen accountability for product failures.
Measures to simplify products, reduce claims friction and encourage broader use of the National Health Claims Exchange dominated discussions at the panel's latest meeting.
Designed for tunnel owners, developers and contractors, the cover funds specialist rescue and crisis-response operations following major underground incidents.
The reforms are expected to improve market discipline and product governance, although Moody's says changes will take longer to materialise than in motor insurance.
As rising claims and mental health risks put pressure on disability insurance, APRA and ASIC are pushing insurers to improve product designs and sustainability.
