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

Bupa's 2026 Health Insurance Premiums to Rise by 4.8% from April

06 May 2026: Paige Estritori

Bupa Australia has announced a 4.8% increase in health insurance premiums, effective from April 1, 2026. This adjustment, approved by the Federal Health Minister, reflects the rising costs associated with healthcare services and the growing demand for medical treatments. - read more

Suncorp's Strategic Reinsurance Placement Spurs 10% Share Price Surge

06 May 2026: Paige Estritori

Suncorp has successfully secured up to AU$2.4 billion in reinsurance protection over a five-year period, leading to a significant 10% surge in its share price. This strategic move aims to cap natural hazard costs in approximately 90% of scenarios, thereby enhancing the company's fiscal 2026 growth outlook. - read more

IAG Achieves AU$505 Million Net Profit in First Half of FY26

06 May 2026: Paige Estritori

Insurance Australia Group (IAG) has reported a net profit after tax of AU$505 million for the first half of the 2026 financial year, demonstrating resilience in the face of severe seasonal weather events. This performance underscores the company's robust financial management and strategic initiatives aimed at maintaining stability. - read more

Suncorp's Strategic AU$2.4 Billion Reinsurance Agreement

06 May 2026: Paige Estritori

Suncorp, a leading Australian general insurer, has recently secured a substantial reinsurance agreement valued at up to AU$2.4 billion over five years. This strategic move is designed to cap natural hazard costs in approximately 90% of scenarios, thereby enhancing the company's financial resilience against unforeseen events. - read more

Click for more Insurance News