Federal MPs quizzed the Insurance Council of Australia (ICA) and Allianz today on industry responses to COVID-19, natural disasters, and the Hayne royal commission.

Prior to the House of Representatives Standing Committee on Economics hearings, Chairman Tim Wilson talked about holding the industry to account for “widespread misconduct”, sparking fears of a hostile atmosphere.

The hearings will continue tomorrow, and insuranceNEWS.com.au is providing live updates.

Although Mr Wilson repeated the “widespread misconduct” claim in his opening remarks – despite having had it pointed out to him that the Hayne royal commission did not accuse the industry of this – it was the committee’s Deputy Chairman, Andrew Leigh, who played the role of chief interrogator today, asking tough questions across a number of issues.

ICA was first to give evidence, with CEO Rob Whelan saying insurers “are fulfilling their promises” in what is the worst natural disaster season on record, and helping customers through the “difficult times” of COVID-19.

ICA also revealed that it’s working with Finity to consider “broad options” for some level of insurance cover the next time a pandemic strikes.

Dr Leigh said he wants ICA to order the insurers not to pursue coronavirus-hit tenants directly for lost rent. “It hardly seems in the spirit of things,” he said.

ICA says it is up to particular companies how they respond, but Dr Leigh was critical of what he saw as the council’s “hands-off” approach. No evidence was presented that showed landlord insurers are pursuing affected tenants for recovery.

Dr Leigh has also taken up Choice’s battle for a standard definition on fire, despite insurers explaining previously that there is little evidence of a problem.

And he took aim at Allianz for failing to commit to motor insurance refunds as a result of reduced claims during COVID-19 shutdowns.

“It seems a bit heads I win, tails you lose,” Dr Leigh responded, after MD Richard Feledy outlined a more considered approach.

Greens leader Adam Bandt focused on the issue of climate change. He wants ICA and its members to admit we’re heading for disaster and uninsurability, but the industry is being more circumspect.

Mr Bandt says the science shows we are on track for a 4-degree rise in temperature, which would be catastrophic, and believes ICA is “selling its members out” by not pushing for more action.

Mr Whelan says the approach needs to be global “to make a real difference”.

“We would always consider greater emissions reduction to be a long-term goal,” he said.

Liberal MP Craig Kelly, on the other hand, believes talk of this past summer being Australia’s worst-ever for natural disasters is an exaggeration, and that climate change isn’t affecting insurance claims levels at all.

The Australian Financial Complaints Authority (AFCA) also appeared, with CEO and Chief Ombudsman David Locke being very complimentary about insurers post-royal commission. However, he also believes disclosure remains a major issue that needs to be tackled.

He says many people buy insurance based on price and advertising, not on information 40 pages into a document.

“Not everybody is a sophisticated consumer and that includes small businesses,” he says. “More can be done.”

He says standardised definitions and a “minimum level of cover” would help.

The focus switched this afternoon to life insurance with Clearview MD Simon Swanson quizzed about COVID-19 coverage, rising premiums and suicide exclusions.

The hearings and our live blog will resume tomorrow at 9.15am, with Youi, Suncorp, IAG, funeral insurer Youpla and QBE set to attend.