Australian Securities and Investments Commission chair Joe Longo says more than 20 flood inquiry recommendations directed at the regulator will be carefully considered, as it also looks at using its claims handling powers for enforcement action.

Mr Longo acknowledged the inquiry’s work in an opening statement today at a House of Representatives Standing Committee on Economics hearing on regulator annual reports. 

“This was a thorough inquiry and by conducting hearings in flood-impacted regions of the country, the committee heard directly from many Australians whose lives have been upended by the [2022] floods, and were let down by their insurers,” Mr Longo said. 

“ASIC will take time to carefully consider the inquiry’s recommendations, including the 22 that relate directly to us. We will do this in the context of the work we are already undertaking in relation to general insurance.” 

Many of the inquiry’s 86 recommendations are directed at the industry code of practice and regulatory oversight. They include that ASIC appropriately use powers gained from claims handling coming under the Corporations Act, with the powers recently granted and still untested. 

“We are actively considering matters that would enable ASIC to use our claims handling powers for enforcement action,” Mr Longo said today.

“ASIC has clear expectations of the insurance industry and insurers have a lot of work to do to rebuild the trust and confidence of consumers. We are continuing to closely watch this sector.” 

Australian Prudential Regulation Authority chair John Lonsdale told the hearing the watchdog continues to work with industry, other regulators and government to address insurance affordability and availability pressures. 

“Our work includes assessing data to consider some of the issues associated with the protection gap in general insurance, as well as finalising an APRA-ASIC joint review into premium increases in life insurance,” he said. “We also continue to support the Hazards Insurance Partnership to progress disaster risk reduction and natural hazard insurance.”

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