The Australian Securities and Investments Commission (ASIC) will review insurers’ surveillance and investigation techniques, according to Chairman Greg Medcraft.

Consumer groups last year claimed industry estimates of fraud are “routinely exaggerated” to justify a threatening approach that assumes guilt.

A report by the Financial Rights Legal Centre has detailed the experiences of 40 consumers, raising concerns about racial profiling and gruelling five-hour interviews.

Speaking at the Insurance Council of Australia’s annual forum in Sydney, Mr Medcraft said concerns have been raised about processes “which are detrimental to consumers”.

“Industry has been on notice of these concerns, and has had time to review them and address any shortcomings,” he said.

The independent Code Governance Committee is holding an inquiry into the Financial Rights Legal Centre’s allegations, and its report should be released in April.