Published • loading... • Updated
Watchdog Warns Insurers Are Offering Insufficient Cash Settlements
ASIC found 63% of reviewed home claims involved cash payouts that often relied on one quote and left customers facing repair gaps.
- The Australian Securities and Investments Commission warned that insurers are frequently short-changing homeowners with inadequate cash settlements that often fail to cover true repair costs, leaving policyholders to shoulder the financial burden.
- ASIC found insurers offered cash settlements in at least 63 per cent of reviewed claims, with more than half based on a single quote from preferred suppliers offering discounted pricing to secure repeat business.
- Cardwell pensioner Leon Wuttrich received a $127,000 settlement offer for flood repairs, while independent contractors estimated costs at $305,000 and $327,000; Julia Hirning was forced to sell her home after her insurer's settlement proved insufficient.
- ASIC Commissioner Alan Kirkland called for insurers to apply contingency buffers to settlement offers, while the Insurance Council of Australia claimed a 'significant industry uplift' since Tropical Cyclone Jasper in addressing cash settlement practices.
- Financial Services Minister Daniel Mulino said insurers "must ensure consumers have all the information they need," with an updated General Insurance Code of Practice expected to be handed to ASIC later this year for stronger protections.
Insights by Ground AI
11 Articles
11 Articles
Coverage Details
Total News Sources11
Leaning Left8Leaning Right1Center1Last UpdatedBias Distribution80% Left
Bias Distribution
- 80% of the sources lean Left
80% Left
L 80%
Factuality
To view factuality data please Upgrade to Premium
