Australian Securities and Investments Commission (ASIC) has written to the directors of general insurance companies regarding their expectations about insurer responses to the COVID-19 pandemic.
The regulator has indicated that it expects insurers to handle insurance claims with utmost good faith and to deal with complaints genuinely, promptly, fairly and consistently.
ASIC has asked that insurers be flexible in dealing with consumers’ specific circumstances. The notice states, “Where consumers are no longer able to pay premiums due to reduced income, insurers should consider how they can best respond to this issue in order to help consumers continue to maintain key insurance coverage.”
“This might include, where appropriate and reasonable, measures including premium ‘holidays’, deferrals, or reductions for a reasonable period of time.”
The letter indicates that now more than ever, it is important that general insurers stand by the commitments made in the 2020 General Insurance Code of Practice, to provide value, transparency and fairness; and promote trust, integrity and respect.
You can read the complete letter here.