Non-major tightens insurance compliance after ASIC crackdown

by Julia Corderoy29 Oct 2014
Suncorp group has finalised the independent review of its life and general insurance businesses following a request by ASIC to review its compliance systems.

In the period from June 2010 to June 2013, over 849,000 customers were affected by the reported breaches, requiring refunds of approximately $23 million. In June 2013, Suncorp agreed to implement a number of enhancements to its compliance systems specifically across its life and general insurance businesses, following the large number of significant breaches reported to ASIC.

Deputy Chairman Peter Kell said, “ASIC welcomes the report, which followed a positive and constructive process with Suncorp. We are pleased that the Suncorp Group Board has given this matter the priority and attention it deserves.

“The independent review has led to necessary improvement in Suncorp's compliance systems, which will ultimately benefit consumers.”

The breaches reported by Suncorp included failure to provide promoted discounts to eligible multi-policy general insurance customers, some Seniors Card holders on their home and contents policies, and some customers who purchased contents insurance with a portable cover option online. The breaches also included failure to disclose significant policy upgrades to some life insurance customers.