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ASIC slams insurers for causing consumers ‘quite a lot of grief’ when investigating car claims

The corporate watchdog claims insurers are carrying out poor practices when investigating fraudulent car insurance claims.

The Australian Securities and Investments Commission says insurers are not successfully investigating fraudulent claims, and of the ones they do investigate, they end up paying out the claims.

The regulator has found consumers are often subjected to interviews which are similar to an interrogation.

ASIC Executive Director Financial Services Michael Saadat tells Ross Greenwood insurers often outsource the investigation to a third party without regulation.

“They often put the consumer through a very hostile process and cause the consumer quite a lot of grief and in many cases unnecessarily.

“Insurers need to do a much better job.”

Click PLAY to hear the full interview

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