The Australian Consumers Insurance Lobby (ACIL) has urged the General Insurance Code Governance Committee (CGC) to name the insurer found to have breached the General Insurance Code of Practice.
The consumer group argued that withholding this information undermines regulatory transparency and weakens public confidence in the enforcement process.
ACIL chairperson Tyrone Shandiman (pictured) said policyholders and industry stakeholders should be made aware when an insurer fails to meet its obligations.
“The justification that the insurer demonstrated a ‘proactive and effective response’ does not negate the right to transparency. Accountability should not be contingent on cooperation – it should be a fundamental expectation,” he said.
The CGC’s enforcement action included a $100,000 Community Benefit Payment as a penalty for breaches related to claims and complaints handling. However, Shandiman suggested that financial penalties of this scale have minimal impact on large insurers and that reputational consequences would serve as a stronger deterrent.
ACIL also raised concerns that withholding the insurer’s identity prevents affected policyholders from pursuing further action and calls into question the independence of the regulatory process.
“By keeping the insurer’s identity hidden, the CGC is sending the wrong message – that breaches can be quietly resolved behind closed doors, without meaningful consequences,” Shandiman said.
The group has called on the CGC to reconsider its stance, arguing that increased transparency is necessary to rebuild consumer trust in the insurance industry.
The CGC has taken enforcement action against an unnamed Australian insurer after determining that it failed to meet industry standards in claims and complaints handling.
The breaches, which impacted 35 policyholders – including 22 affected by severe weather events – led to a $100,000 Community Benefit Payment.
CGC chair Veronique Ingram said the insurer did not provide the level of service expected under the code.
The CGC identified internal operational issues within the insurer that resulted in delayed claims processing and inadequate repairs.
The investigation also found shortcomings in complaints handling, with some customers required to lodge multiple complaints before receiving a resolution. One policyholder reportedly submitted 12 complaints before their issue was resolved.
In response, the insurer has taken steps to rectify the situation, including paying $1.2 million in compensation, completing outstanding repairs, and reviewing internal processes to prevent similar issues in the future.
The CGC has stated that the $100,000 Community Benefit Payment reflects the seriousness of the breaches while directing funds to a designated charity.
Despite the enforcement action, the committee has chosen not to disclose the insurer’s name, citing its cooperation and corrective measures.
The CGC will continue monitoring industry compliance, reinforcing expectations that insurers uphold high standards in claims and complaints management.