The Australian Securities & Investments Commission (ASIC) published findings from a follow-up review of home insurance claims handling, concluding that insurers’ improvements since ASIC’s August 2023 review still fall short in key areas. The review highlights continuing gaps in how insurers oversee independent experts whose reports inform claim decisions and in the information provided to consumers when insurers offer cash settlements. ASIC found insurers generally lacked a systemic approach to monitoring the quality of independent expert reports, often relying on claims-handling staff who may not have the required subject matter expertise to identify errors. It also observed that, once claim decisions were made, insurers typically did not have processes to check the quality of expert reports or validate decisions that relied on them. On cash settlements, ASIC noted that while insurers are legally required to provide a cash settlement fact sheet, many fact sheets provided only minimal information about review rights and few clearly explained the review process or when the right to review expires, potentially limiting consumers’ ability to make informed choices. The review also noted ongoing issues around resourcing, customer communications, identification of vulnerable customers, claims handling improvement programs and audits. ASIC reviewed action plans between August 2024 and April 2025 for seven insurers, including AAI (Suncorp group), Allianz, Auto & General, Hollard, Insurance Australia Group, QBE and Youi. ASIC expects insurers to assess their claims handling programs against the better and poorer practices identified in the review.

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