Federal MPs have called for a focus on insurance issues such as affordability and pricing practices after reviewing the corporate and competition watchdogs’ annual reports for 2021, 2022 and 2023.

The House of Representatives Standing Committee on Economics last week released its findings on the Australian Securities and Investments Commission and the Australian Competition and Consumer Commission.

Its review of ASIC’s insurance work covered broken discount promises, enforcement action over pricing misconduct and ways to strengthen the regulator’s oversight.

“The committee is concerned by ASIC’s reports of widespread misleading practices in the insurance industry, and notes ASIC’s significant action against major insurers,” the MPs said.

“The committee urges ASIC to remain vigilant on this issue.” 

ASIC’s views on the committee’s 2022 floods inquiry final report were also discussed. One inquiry recommendation involves giving the regulator recurrent data-gathering powers in areas such as claims processing, cash settlements and compliance with the General Insurance Code of Practice.

Labor MP Daniel Mulino, who led the floods inquiry, said: “Where we recommended significantly expanding ASIC’s data-collecting powers for the insurance industry … we were pleased to hear through these annual report reviews that ASIC supports those recommendations.” 

The committee says the ACCC has flagged the benefits of standardised definitions in insurance contracts, given premium affordability problems.

And it notes the competition watchdog has reported signs the government-backed cyclone reinsurance pool is “beginning to deliver some premium relief for some consumers in some regions”.

See the reports on ASIC here and the ACCC here.