Powered by MOMENTUM MEDIA
investor daily logo

Suncorp asked to improve compliance

  •  
By Reporter
  •  
2 minute read

Suncorp will implement several enhancements to its program of compliance across its life and general insurance businesses, following intervention by the regulator.

The Australian Securities and Investments Commissions (ASIC) announced it has requested an independent review of those compliance systems based on the group’s own reporting of breaches.

Since June 2010, more than 849,000 customers have been affected by reported breaches, requiring refunds of approximately $23 million, ASIC stated.

Those breaches include failure to provide promoted discounts to eligible multi-policy general insurance customers, some senior card holders on their home and contents policies, and some customers who purchased contents insurance with a portable cover option online.

==
==

The breaches also included failure to disclose significant policy upgrades to some life insurance customers, ASIC stated.

ASIC Deputy Chairman Peter Kell said Suncorp acted “appropriately” in reporting the breaches to ASIC as it identified them, and in acting to remediate affected customers.

According to ASIC, the bank has committed to improve the processes for:

  • monitoring and supervising representatives in its life and general insurance businesses
  • reporting incidents and breaches in its life and general insurance businesses
  • administering insurance policy customer discounts in its general insurance business, and
  • training representatives in its general insurance business.
Suncorp will report regularly to ASIC this year until the compliance system changes are complete, ASIC stated.

“ASIC was keen to ensure Suncorp’s systems were adequate to prevent the breaches happening again so requested the independent review. Suncorp has taken a constructive approach and ASIC is pleased Suncorp is improving its compliance systems in a way the review suggested,” Mr Kell said.

Suncorp has already remediated most affected customers and is completing the refund processes, ASIC said.

Suncorp asked to improve compliance

Suncorp will implement several enhancements to its program of compliance across its life and general insurance businesses, following intervention by the regulator.

investordaily image
investordaily image
ID logo

Comments powered by CComment