The Australian Securities and Investments Commission (ASIC) has pledged to use its regulatory powers to provide interim protection for Australians affected by the recent bushfires as it waits for claims-handling reforms that are due in 13 months.

ASIC has established a dedicated working group to manage issues arising from natural disasters and events such as the bushfire crisis, and says consumer protection is a pillar of its natural disaster response.

It has been warning consumers against “unscrupulous” businesses that undertake the administrative work on insurance claims in return for a fee.

Unfair contract terms (UCT) will extend to insurance contracts from April 5 next year, bringing insurance into line with all other financial products.

The regulator says it will review insurers’ policies and consult with relevant stakeholders to identify key areas of concern.

“We expect that insurers will take a proactive approach to reviewing their contracts,” ASIC says.

In its latest half-yearly update for September to February, the regulator also says another of 13 misconduct cases referred by the Hayne royal commission has been earmarked for criminal action, as have two case studies.

Currently, one referral is being considered by the Commonwealth Director of Public Prosecutions (CDPP) “for potential criminal action”.

Seven more referrals remain under investigation while three have concluded with no further action.

Cases against life insurers TAL, as well as MLC and NAB’s super funds trustee Nulis Nominees, are already the subject of civil penalty litigation after being called out by Commissioner Kenneth Hayne in regard to fees for no service.

The royal commission also examined 32 case studies, and of these ASIC says two are now being considered by the CDPP for potential criminal action while 17 are still under investigation.

One, relating to NAB, was recently finalised when a former branch manager was sentenced to a year’s jail. Another four – Select AFS, Dover Financial Advisers, Doyle and NAB – are the subject of civil penalty litigation over unlicensed home loan introductions.

ASIC says eight cases have concluded with no further action.

The watchdog says it will continue to put other cases before the court under its newly adopted ‘why not litigate?’ approach, which aims to deter misconduct across the financial services sector and has been backed by increased funding from the Government.