Australia’s corporate regulator calls for better handling of insurance claims

(Reuters) -Australia’s corporate regulator said on Wednesday it had asked the country’s general insurers to improve their claims handling practices and resources after it found issues in multiple areas in a review.

The Australian Securities and Investments Commission (ASIC) has commenced several investigations related to claims handling practices after its review of more than 218,000 claims lodged with six insurers, including Insurance Australia Group, QBE Insurance and Suncorp, during January-March 2022.

The commission found insurers faced unduly pressure due to inclement weather events during and before the period. It also pointed out areas of improvement such as communications, project management and resourcing.

A QBE spokesperson said in an emailed response that the company would continue to work to review and address industry concerns.

An Insurance Australia spokesperson said the company has taken on board the findings and will “always look at any opportunites” to support its customers.

Youi Insurance, a private insurer, also said it would identify opportunities to improve its processes.

Meanwhile, Allianz (ETR:) Australia Insurance, another private player, said it had already taken steps to enhance customer communication and claims experience.

The company said it had more than doubled the size of its permanent catastrophe event claims team due to the rising frequency of extreme weather events.

ASIC Deputy Chair Karen Chester said while an insurer may not be able to control all factors that impact claims, the areas identified for improvement are within their remit.

A spokesperson for the Insurance Council of Australia said the industry would closely study the issues covered in the report to drive further improvements to customer and community outcomes.

In 2022, more than 300,000 disaster-related claims were lodged from four declared insurance events across the country, costing A$7.17 billion ($4.62 billion) in insured losses, according to the council.

Suncorp did not immediately respond to Reuters’ requests for comments. ($1 = 1.5513 Australian dollars)