ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Adviser Levy Pressure Puts PI Reform Back in Focus

06 Jul 2026: Paige Estritori

The Financial Advice Association Australia has renewed pressure on the Federal Government to limit Compensation Scheme of Last Resort costs for financial advisers, arguing the profession should not carry more than $20 million in total levy exposure while adviser numbers remain under strain. - read more

New Strata Broking Findings Raise the Bar for Trust

06 Jul 2026: Paige Estritori

Fresh findings from the Insurance Brokers Code Compliance Committee have added another layer to Australia’s continuing strata insurance transparency debate. The committee’s review of strata broker-agent arrangements examined seven brokers collectively connected to one thousand and eighty-eight strata representatives, and resulted in nine formal breach determinations. Two brokers were also referred to ASIC for consideration of conflict management issues. - read more

Why Micro-Rating Matters for Your Next Shop Insurance Renewal

06 Jul 2026: Paige Estritori

Australia’s commercial insurance market is entering a more nuanced phase. While headline pricing indicators suggest conditions are easing for many business customers, a recent Insurance Business Australia report highlights a shift away from the old idea of one broad insurance cycle. Instead, pricing is increasingly being assessed by product line, geography, occupation, claims history and the quality of each risk submission. - read more

School Holiday Travel Highlights a New Test for Insurance Cover

05 Jul 2026: Paige Estritori

Australia’s winter school holiday rush has put travel insurance back in the spotlight, with families heading to Bali, Fiji and Thailand, skiers travelling to New Zealand and domestic holidaymakers chasing either snow or sunshine closer to home. But this year’s peak period is unfolding against a more unsettled backdrop: geopolitical tension, airspace closures, airline disruption and a growing expectation that insurers should do more than reimburse costs after the event. - read more

Click for more Insurance News