ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

2

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

ASIC's case against Hollard revolves around the insurer's handling of the couple's claim following storm damage to their property in October 2021. The regulator claims Hollard's excessive delays and failure to conduct essential make-safe work have rendered the couple's home uninhabitable, leading to extensive moisture, mould, and decay issues that necessitate demolition and rebuilding.

Sarah Court, ASIC's deputy chair, highlighted the seriousness of the delays, stating that such prolonged inaction is unacceptable and potentially unlawful. The legal action aims to address growing concerns about increasing general insurance complaints and send a strong message about the unacceptability of such delays.

The claim, initially filed in October 2021, took Hollard nearly three and a half years to resolve. The insurer rejected the claim in April 2023, 18 months after its submission. Following this, the couple sought intervention from the Australian Financial Complaints Authority, which directed Hollard to provide compensation for non-financial losses and substantiated the storm as the proximate cause of the damage.

Hollard eventually consented to a cash settlement exceeding $1.5 million. However, ASIC contends that despite initially accepting the claim, Hollard delayed decisions regarding repairs, took over nine months to arrange a structural engineer inspection, and postponed the provision of temporary accommodation.

Responding to the legal action, a Hollard spokesperson acknowledged the proceedings and expressed support for ASIC's efforts in fostering consumer-positive outcomes. They noted Hollard's cooperation with ASIC but refrained from further commenting due to the ongoing nature of the legal matter.

Published:Monday, 14th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

ICA Proposes Measures to Mitigate Escalating Motor Insurance Premiums

09 Feb 2026: Paige Estritori

The Insurance Council of Australia (ICA) has released a policy paper titled 'Motor Insurance Policy Paper - A Roadmap for Reducing Rising Premiums,' highlighting the urgent need for coordinated action to address systemic cost drivers behind the 42% increase in comprehensive motor insurance premiums since 2019. - read more

Budget Direct Triumphs as Australia's Top Insurer in 2026

09 Feb 2026: Paige Estritori

In a remarkable achievement, Budget Direct has been honoured as the inaugural 'Insurer of the Year' at the 2026 Finder Provider of the Year Awards. This prestigious recognition underscores the company's unwavering commitment to delivering exceptional value and service to Australian policyholders. - read more

Australian Insurers Face Challenges in Cyber Risk Readiness

09 Feb 2026: Paige Estritori

Recent findings from the PwC Insurance Banana Skins Survey have raised concerns about the preparedness of Australian insurers in managing emerging risks, particularly in the realms of cyber security and artificial intelligence (AI). The survey indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to their global counterparts, highlighting a significant gap in readiness. - read more

Significant Decline in Australian Commercial Insurance Rates

09 Feb 2026: Paige Estritori

In a notable development for the Australian insurance market, commercial insurance rates experienced a substantial decline of 12% in the fourth quarter of 2025. This decrease, as reported by Marsh's Global Insurance Market Index, represents the most significant drop among the eight regions monitored and marks the steepest reduction since the Pacific rates began to decrease in early 2024. - read more

Treasury Initiates Review of Professional Indemnity Insurance to Support CSLR

09 Feb 2026: Paige Estritori

The Australian Treasury has commenced a consultation process aimed at improving the effectiveness of professional indemnity (PI) insurance, with the goal of strengthening the Compensation Scheme of Last Resort (CSLR). This initiative seeks to gather stakeholder feedback on the current operation of PI insurance and explore opportunities for enhancement. - read more

Click for more Insurance News