The Australian Securities and Investments Commission (ASIC) has begun reviewing licensed firms that manage home insurance claims for profit and will seek stakeholder views on the draft revised General Insurance Code of Practice. Commissioner Alan Kirkland outlined both workstreams in a speech at the Insurance Council of Australia Annual Conference in Sydney, alongside concerns from earlier reviews of insurers’ cash settlements and motor insurance premium disclosures. The claims management review will examine sales and client acquisition practices, fee and cancellation arrangements, and firms’ involvement in claims and complaints handling. It will also assess commercial relationships with repairers and suppliers, distinguishing legitimate services from practices that create or increase consumer harm, including those associated with firms targeting disaster victims. Separately, feedback on the revised code will inform discussions about changes needed before a final version is submitted for formal consideration, potentially early in 2027. Earlier reviews of insurers highlighted concerns that cash settlements may not cover actual repair costs and that consumers receive insufficient information about their rights. Cash components featured in 63% of claims examined, while 52% of cash settlement offers for Cyclone Jasper claims relied on a single quote, often from an insurer’s preferred supplier. In the motor insurance review, none of the insurers explained the key factors determining premiums or annual changes in their quote and renewal documents. Insurers charging extra for instalment payments also failed to highlight that additional cost in renewal notices.
ASIC reviews home insurance claims managers and plans consultation on revised industry code
At the Insurance Council of Australia Annual Conference, Australian Securities and Investments Commission (ASIC) Commissioner Alan Kirkland outlined a review of licensed firms that manage home insurance claims for profit. The review will examine customer acquisition, fees, claims handling and supplier relationships to identify practices that risk consumer harm. ASIC will also seek feedback on the revised General Insurance Code of Practice, with a final version potentially submitted for formal consideration early in 2027.