Heavy-handed insurance investigators treat innocent consumers like criminals, according to a new report from the Financial Rights Legal Centre.

The centre alleges industry estimates of fraud are “routinely exaggerated” to justify a threatening approach that assumes guilt.

The report details the experiences of 40 consumers, raising concerns about racial profiling and gruelling five-hour interviews.

The Insurance Council of Australia has hit back, pointing to the amount of insurance fraud and insisting the report’s “anecdotal” complaints represent a tiny proportion of claims and investigations.

However, it says its Code Governance Committee will consider the report’s recommendations.

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