ASIC has published Report 768 Navigating the storm: ASIC’s review of home insurance claims (REP 768) which assesses insurers’ claims handling practices since the commencement of general insurers’ obligation to manage claims efficiently, honestly and fairly from January 2022.
The review looked at data from more than 218,000 claims lodged between January and March 2022 from six insurers that cover 63% of the Australian home insurance market. All six insurers are subscribers to the General Insurance Code.
Insurers need to handle and settle claims fairly and transparently, without undue delay and with minimum intrusion and burden. They must ensure that consumers know what to expect in the claims process and are informed about decisions in a timely way
ASIC observed both good and poor practices across all six insurers, with areas for improvement including:
› better communications with consumers about decisions, delays and complications
› better project management and oversight of third parties
› better handling of complaints and expressions of dissatisfaction
› better identification and treatment of vulnerable consumers, and
› better resourcing of claims handling and dispute resolution functions.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
