Insurers’ surveillance and investigation practices will face scrutiny under the Australian Securities and Investments Commission’s business plan for this financial year.

The regulator will examine the industry’s handling of potentially fraudulent claims, which it says may lead to unfair and unreasonable practices.

Another new area of focus is the sale of consumer credit insurance by authorised deposit-taking institutions.

The commission has six insurance-related surveillance projects planned for the financial year, including ones carried over from the previous two years.

It continues to examine the mis-selling of products such as funeral and life cover to vulnerable consumers and add-on insurance via car dealerships.