The Australian Securities and Investments Commission (ASIC) has warned that dealing with the harm done through mis-selling insurance will be a major focus over the next year.

Chairman James Shipton told the Committee for the Economic Development of Australia in Melbourne today that ASIC will start taking enforcement action against insurers and any people who mis-sell insurance products to vulnerable customers, as well as review “concerning” product features and practices.

ASIC will also start collecting data to establish a baseline against which to measure its future regulatory work, Mr Shipton says.

“In everything that we do we will consider harmful practices within the financial system, particularly where they impact those who are vulnerable, including our indigenous communities,” he said.

“We will take regulatory action to ensure consumers in financial hardship are treated fairly and that financial services providers act responsibly and with accountability.”

ASIC has already begun taking stronger action against mis-selling practices. Mr Shipton flagged taking enforcement action against Commonwealth Bank last year for mis-selling credit insurance. ASIC initially focused on remediation in that case.

It also published a guidance note for the Australian Financial Complaints Authority last year to report insurers if they engage in unconscionable conduct for cover that isn’t need or can’t be claimed on.

And an ASIC investigation into life insurer ClearView at the beginning of last year forced the insurer to halt telesales of life insurance and refund $1.5 million to 16,000 customers. The regulator says ClearView staff made misleading statements about cover, premiums and the effect of pre-existing conditions.

The Federal government has also proposed reforms to insurance contract terms and unfair practices in claims handling. Mr Shipton says ASIC will support such views.