Australian regulator calls for better claims handling

ASIC expects the industry to improve its response to recent events and prioritise the resolution of outstanding claims related to 2022 floods.

The Australian Securities and Investments Commission issued a letter to remind general insurers of their obligations as Australian financial services (AFS) licensees when managing insurance claims, particularly in response to severe weather events.

General insurers are obligated to handle claims efficiently, honestly, and fairly, ensuring timely resolution.

Recent severe weather events have impacted communities across Australia, resulting in numerous insurance claims. 

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Insurers must fulfil their obligations in responding to these claims by transparently communicating with customers, effectively managing third parties, addressing complaints, identifying vulnerable customers, and adequately resourcing claims handling and dispute resolution functions.

ASIC emphasises its ongoing focus on this area and identifies addressing misconduct in insurance claims handling as a key enforcement priority for the year.

ASIC expects the industry to improve its response to recent events and to prioritise the resolution of outstanding claims related to the 2022 flood events.