Suncorp launched a new advertising campaign for its complete replacement cover, even while ASIC was raising concerns it might mislead customers, the commission hears.

Mr Dransfield says there was a belief at that time that the marketing was appropriate and that it was a product that should be promoted.

“I think the business imperative certainly was the driver,” he says.

ASIC was already investigating a previous campaign that had given consumers the impression that the insurer would in all cases repair and rebuild properties no matter what the cost, under the complete replacement cover.

Mr Dransfield agrees that in reality the insurer could choose to cash settle and costs were capped by an assessment of what was reasonable in replacing the previous building.