The Australian Securities and Investments Commission (ASIC) has flagged its intention to collect data on insurance claims related to the coronavirus outbreak once immediate pressures subside.

ASIC says in letters to company directors last week that it will be engaging with the Insurance Council of Australia (ICA) and companies shortly to discuss likely data requirements.

“Mindful of the demands on insurers, ASIC does not currently intend to seek data on claims connected to the COVID pandemic over the coming months,” Senior Executive Leader – Insurers Emma Curtis says.

“However, we envisage that we will seek data as the operational impact of the pandemic subsides.”

Ms Curtis says insurers should, at a minimum, identify claims where the loss event is connected to the effects of the COVID-19 outbreak.

“We will, of course, continue to work closely with ICA and insurers to ensure that the regulatory burden placed on insurers by our data requirements is minimised,” Ms Curtis says.

ASIC has sent a similar letter to the life insurance sector advising it will also be engaging with the Financial Services Council.

The ASIC letters generally set out the regulator’s expectations for how insurers should assist consumers during the pandemic, particularly given increased financial vulnerability.

It calls on insurers to implement enhanced requirements under the new ICA Code of Practice, being phased in this year, and says it expects flexibility in dealing with individual consumer circumstances.

“ASIC also expects insurers to consider whether outcomes will be fair for consumers if they have to actively ‘opt in’ or make a request in order to receive any benefit insurers offer in response to the COVID pandemic,” Ms Curtis says.

“For example, consumers who are struggling to pay their insurance premiums may simply allow the policy to lapse rather than contact their insurer.”

ASIC says insurers must ensure staff do not, either intentionally or inadvertently, discourage consumers from making claims.

“This will be particularly important for travel insurance claims where there are differences between policies and insurers about when the COVID pandemic became a known event,” Ms Curtis says.