QBE has agreed to use its own corporate letterheads to contact clients after concerns were raised by the Australian Securities and Investments Commission (ASIC).

It comes after clients involved in escalated complaints and dispute resolution cases were found to have received letters from the insurer’s appointed law firm.

QBE outsources complaints and dispute resolution cases to the firm.

ASIC says using the law firm’s letterheads could “create a potential barrier”, leaving clients too intimidated to pursue their cases and wrongly assuming they need legal representation.

The practice also contravenes QBE’s financial services licence obligations and the Australian Standard for handling complaints.

“A consumer’s ability to access free dispute resolution is an important part of the financial services system,” ASIC Deputy Chairman Peter Kell said.

“While licensees can outsource their dispute resolution functions, it must be done in a way that is consistent with their licence requirements, ensures accessibility to customers and maintains a customer-focused approach.”

QBE will start using its own letterheads for escalated complaints and dispute resolution cases by the end of next month.

ASIC says it is not aware of other companies with similar issues.