CommInsure claims placed under Senate scrutiny
The Senate Committee inquiring into the financial planning industry will have its scope expanded to deal with the wide-ranging claims around CommInsure's claims-handling and whether they are a general phenomenon within the life insurance industry.
The Government backed expansion of the Senate Committee's inquiry today, with the Assistant Treasurer, Kelly O'Dwyer using a radio interview to specifically endorse the move and to describe the allegations as "shocking".
Further, the minister said that the Australian Securities and Investments Commission (ASIC) had advised the Government it was looking into the cases which had been raised and would be providing the Government with an urgent report.
"We are very keen to get to the bottom of the facts in relation to this particular matter," she said.
"There will be a Senate inquiry that looks at these issues but more importantly than that there will also be a proper investigation by the Australian Securities and Investments Commission that will be investigating the stories and the allegations that were raised in the ABC story overnight."
Importantly, O'Dwyer said the Government needed to check whether the issues were related only to CommInsure or were systemic.
"The idea that people come to claim on their insurance, they do that at a time in their lives where they are under deep stress and clearly suffering from personal hardship, and for rightful claims to be denied is completely unjust. So we need to get to the bottom of the facts in relation to this matter and that is exactly what we are doing," the minister said.
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
