ASIC Highlights Deficiencies in Insurers' Complaint Handling Practices
ASIC Highlights Deficiencies in Insurers' Complaint Handling Practices
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The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of insurers' complaint handling processes, uncovering significant deficiencies that fail to meet regulatory obligations.
The findings indicate that insurers are not adequately identifying and addressing customer complaints, with one in six complaints going unrecognized.
Additionally, systemic issues are often overlooked, communication timeframes are missed, and existing systems fail to record outcomes such as compensation payments.
These shortcomings are particularly concerning for tradespeople and small business owners who rely on prompt and fair resolution of insurance claims to maintain their operations. Delays or mishandling of complaints can lead to financial strain and disrupt business continuity.
In response to these findings, ASIC has urged insurers to prioritize the development of a positive complaints management culture that values customer feedback and learns from complaints to prevent recurring issues. The regulator is considering further regulatory actions to ensure compliance and protect consumer interests.
For trades professionals, this development underscores the importance of choosing insurers with transparent and efficient complaint handling processes. When selecting an insurance provider, it's advisable to research their track record in managing complaints and to understand the procedures in place for dispute resolution. Ensuring that your insurer is committed to upholding high standards in customer service can provide peace of mind and safeguard your business against potential disruptions.
Published:Wednesday, 18th Feb 2026 Source: Paige Estritori
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Insurance: In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.
