Regulator sets sights on life insurance

In its corporate plan for 2017-18 to 2020-21, the regulator said it would commence a new surveillance project on “insurers’ surveillance and investigation practices when assessing potentially fraudulent claims, and addressing unfair and unreasonable practices”.

The new project is part of ASIC’s push to improve investors’ and consumers’ financial capability, and in turn their decision making processes.

In addition to this new project, the corporate plan said ASIC intends to continue with a number of existing surveillance projects into various facets of the life insurance industry.

These projects include examining life insurers with high numbers of declined claims, the sale of inappropriate products to vulnerable people, claims practices for total permanent disability insurance, the quality of life insurance advice and reviewing life insurance SOAs.