Aussie insurers break own rules

Sydney – Australian general insurance companies have breached their own regulations on more than 31 000 occasions without penalties, a misconduct inquiry heard yesterday, amid mounting calls for tougher oversight.

The revelations cast doubt on the industry’s ability to regulate itself and will ramp up pressure on the government to do more to combat wrongdoing by banks, fund managers and insurers.

Lawyer Rowena Orr said the industry’s self-policing had not been effective, allowing some insurers to take advantage of customers.

Robert Whelan, head of the Insurance Council of Australia, said the body did not penalise members for breaches because they focused instead on remediating customers.