The Australian Securities and Investments Commission has found that full or partial cash settlements were used in at least 63% of the home insurance claims it reviewed, potentially leaving consumers responsible for repair costs that exceed insurers’ offers. ASIC called on insurers to base settlements on realistic repair costs, explain clearly what offers cover and give consumers enough information about their rights and options. More than half of the reviewed cash settlement offers were based on a single quote, and 73% of those quotes came from an insurer’s preferred supplier, whose pricing may not reflect what consumers pay when arranging repairs themselves. For Cyclone Jasper claims, two of five insurers used full or partial cash settlements in more than 80% of cases. Four of the five insurers also failed to apply vulnerable-customer policies consistently, while significant increases in some settlements following complaints raised concerns about the fairness of initial offers. The review covered insurers representing about 65% of the home insurance market.
2026-08-31Australian Securities & Investments Commission
Australian Securities and Investments Commission finds cash settlements in 63% of reviewed home insurance claims, calls for fairer offers
The Australian Securities and Investments Commission found that at least 63% of reviewed home insurance claims involved full or partial cash settlements, which may expose consumers to repair-cost shortfalls. ASIC called for realistic and transparent offers, clearer information and stronger support for vulnerable consumers.