Is parliamentary inquiry showing the worst of the insurance industry?
Is parliamentary inquiry showing the worst of the insurance industry? | Insurance Business Australia
Catastrophe & Flood
Is parliamentary inquiry showing the worst of the insurance industry?
Major insurers offered apologies during last week’s hearings
Catastrophe & Flood
By
Mika Pangilinan
Australia’s general insurance sector has come under intense scrutiny during a parliamentary inquiry into its handling of the floods that devastated eastern states in 2022.
The inquiry, launched by the House Standing Committee on Economics in late January, has unearthed instances of claim delays and denials. Testimonies also highlighted allegations of insurers making unreasonably low settlement offers, as well as prompting accusations of misleading conduct towards policyholders.
In one such testimony, Julia Davis, from the Financial Rights Legal Centre (FRLC), spoke about complaints regarding “appalling behaviour” from the side of insurers, including rude and aggressive behaviour by assessors, and pressure on policyholders to accept inadequate cash settlements.
However, National politician Andrew Gee questioned the effectiveness of such apologies, highlighting a particular case where action was only taken by Allianz after direct intervention by his office.
The floods of 2022 were among the worst natural disasters in Australia’s history. In its aftermath, insurers reportedly received over 303,000 claims, totalling an estimated value of $7.4 million.
The Australian Securities & Investments Commission (ASIC) said during the hearing that it is actively investigating claims handling and dispute resolution practices within the industry.
What are your thoughts on this story and the parliamentary inquiry in general? Feel free to share your comments below.
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