In an awaiting decision in a case and positive motivation for consumers, the Australian Securities and Investments Commission (ASIC) has launched legal action against Hollard Insurance for serious breaches of claim handling. This comes as consumer complaints after natural disasters are on the rise- a big deal for Sydney homeowners concerned with property protection, building inspections, pest inspections in sydney and termite management.
The Case in Brief: A Long Time Coming
At the heart of the matter is a home and contents insurance claim made by a couple from regional Victoria after a big storm on 29 October 2021. The damage to the roof left the home exposed and needed to be assessed and repaired ASAP.
The couple were left waiting 18 months for a decision, despite submitting their claim just two days after the storm, with their claim finally being rejected in April 2023. ASIC alleges Hollard breached their duty of utmost good faith and caused unnecessary and prolonged harm through delays, poor communication and not acting on expert reports.
Delays like this highlight the importance of building inspections in Sydney after natural disasters, where prompt identification of structural damage can mean the difference between repair and demolition
Failure to Act: What Hollard Allegedly Did Wrong
- Took nine months to get a structural engineer to inspect the property.
- Provided delayed access to temporary accommodation to the couple, adding to their hardship.
- Used a non-expert opinion to reject the claim, despite having earlier expert reports that supported it.
- Offered a low cash settlement which the couple rightly declined.
ASIC’s Message: Delays are not just inconvenient, they’re illegal
Sarah Court, ASIC Deputy Chair said:> “The delay is egregious and highlights ASIC’s concern about the significant increase in general insurance complaints to AFCA since the 2022 floods, particularly those related to claim delays. We are taking this case to send a clear message that delays of this magnitude are not acceptable and, in our view, are illegal.”
This sends a message to both insurers and consumers that poor claims handling will not be tolerated when lives and homes are at stake.
Why This Matters for Sydney Homeowners
- Document damage early.
- Identify risks before they escalate.
- Back up claims with expert reports from certified professionals.
Hollard’s Market Position
Hollard Insurance Partners Limited (formerly Commonwealth Insurance Limited) has a 4.4% share of the Australian general insurance market, making them the fifth-largest insurer in the country. With an estimated revenue of $2.308 billion (FY 2024) and over 1,600 employees, they are under intense public and regulatory scrutiny.
This comes after ASIC has been warning insurers to lift their claims handling game. In 2021 ASIC reviewed insurers’ response to the Black Summer bushfires and in 2023 their Report 768: Navigating the Storm highlighted widespread failures in home insurance claims processes.
Due Diligence Builds Trust
- Building Inspection Sydney: Identify structural weaknesses, storm damage and compliance issues.
- Pest Inspection Sydney: Detect infestations that can cause long term damage and health risks.
- Termite Inspection Sydney: Uncover hidden threats to your property’s foundations before they become irreparable.
Conclusion
This is a wake up call for the industry and property owners. Outcomes are pending but the case shows how claim handling failures can destroy lives and properties.
Be proactive and invest in Sydney inspection services and reduce risk, protect your family and be prepared—both practically and legally—when disaster hits.
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