Claims Failures Draw ASIC’s Attention

ASIC has made insurance claims and complaints handling a key enforcement priority for 2026.

ASIC Deputy Chair Sarah Court said claims and complaint handling failures by insurers have been elevated to a top-tier enforcement priority for the coming year, alongside private credit misconduct, misleading pricing, and financial reporting breaches.

While the regulator has made it clear it will focus on all insurance claims, recent focus has been on the general sector having taken action again RACQ, Choosi, and Hollard Insurance.

“We’re doing more investigations, taking more matters to court and securing record penalties,” Court said.

“In the past 12 months, we’ve doubled the number of new investigations and nearly doubled the number of new matters filed in court.

“In the current environment, with premiums ever-increasing, claims rising and insurance becoming increasingly out of reach, we will continue our focus on this sector. This year we will particularly look at claims and complaint handling failures.”

ASIC states it will pursue enforcement action where insurers fail to meet obligations under the Financial Accountability Regime and Design and Distribution Obligations, or where consumer remediation and claims processes fall short.

The broader list of ASIC’s 2026 enforcement priorities also targets:

• Misleading pricing practices contributing to cost-of-living pressures
• Poor private credit practices
• Financial reporting misconduct, including failures to lodge reports
• Accountability for the collapse of the Shield and First Guardian Master Funds
• Ongoing enforcement priorities include misconduct affecting vulnerable consumers, superannuation trustee failures, auditor misconduct, and insider trading

Court said ASIC will “zero in” on misleading pricing practices in financial services, particularly where they obscure the true cost of products or premiums.

The regulator also plans increased surveillance of private credit and unlisted investment structures, which it sees as growing areas of market and investor risk.

ASIC’s announcement follows several headline outcomes over the past year, including:

• Proposed $240m in penalties against ANZ, potentially the largest single-entity penalty in ASIC’s history
• Court action against Macquarie and a $320m repayment undertaking to investors affected by the Shield Master Fund collapse
• A 14-year jail term for WA fraudster Chris Marco – the longest sentence arising from an ASIC prosecution

ASIC said more than 40 investigators continue to work on the Shield and First Guardian failures.