Insurers plan to work with the corporate regulator to ensure that support of consumers who suffered financial hardship during the pandemic is rolled forward.

As reported by insuranceNEWS.com.au last week, the Australian Securities and Investments Commission (ASIC) reviewed the responses of general and life insurers to customers suffering hardship as a result of COVID-19, and was pleased with what it found.

But the regulator also wrote to directors of the major insurers outlining expected ongoing improvements.

“ASIC was pleased with insurers’ responsiveness to consumer needs during the pandemic,” it said.

But the review also identified “a number of areas where insurers could make improvements” and spelled out expectations that “enduring support” is in place.

The Insurance Council of Australia told insuranceNEWS.com.au that in July last year insurers brought forward by six months key financial hardship provisions in the 2020 Code of Practice.

“[ICA] notes that ASIC in its letter to general insurers on 22 April 2021 has recognised the ‘critical and timely work undertaken by insurers in responding to the COVID-19 pandemic’ and said it was ‘encouraged’ by general insurers’ responses to consumers experiencing financial hardship,” an ICA spokeswoman said.

“ICA notes ASIC’s comments on working ‘constructively and pragmatically’ with general insurers and we acknowledge ASIC’s work in producing the expectations for general insurers to make further improvements in responding to customers in financial hardship going forward.

“General insurers and the ICA will continue to work with ASIC to support consumers experiencing financial hardship or vulnerability.”

Click here to read the letter.