Following a request from ASIC in 2013 for Suncorp to conduct an independent review into its compliance systems, the corporate regulator has announced the company has concluded the “review and remediation” of its compliance systems.
As a part of the review of its life and general insurance compliance systems, ASIC said Suncorp has provided a report “endorsing the completion of its system remediation program”.
“ASIC welcomes the report, which followed a positive and constructive process with Suncorp,” ASIC deputy chairman Peter Kell said.
“The independent review has led to necessary improvement in Suncorp’s compliance systems, which will ultimately benefit consumers,” Mr Kell continued.
“Where significant breaches occur, it is important that a licensee report to ASIC and take appropriate steps to rectify identified problems and remediate affected customers,” he said.
ASIC requested a review into Suncorp’s compliance systems be undertaken following the report of a large number of “significant breaches”.
“In the period from June 2010 to June 2013, over 849,000 customers were affected by the reported breaches, requiring refunds of approximately $23 million,” a statement from ASIC said.
“The breaches reported by Suncorp included failure to provide promoted discounts to eligible multi-policy general insurance customers, some Seniors Card holders on their home and contents policies, and some customers who purchased contents insurance with a portable cover option online,” it said.
“The breaches also included failure to disclose significant policy upgrades to some life insurance customers,” ASIC said.
A spokesperson for Suncorp said the breaches reported to ASIC related to discounts and policy upgrades that weren’t applied to some of the company’s life and general insurance customers.
“[The breaches] have all been rectified and impacted customers refunded as appropriate,” the spokesperson said.
“At the request of ASIC, Suncorp conducted an independent review of the associated compliance systems. A range of improvements have been implemented in response.”
“ASIC is supportive of Suncorp’s approach to this issue and our response,” said the spokesperson.
