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Thursday 27 June 2013

13-155MR Suncorp Groups Life and General Insurance businesses to improve compliance systems following independent expert review

The Suncorp Group has agreed to implement a number of enhancements to its existing program of compliance system improvement across its life and general insurance businesses.

This follows an ASIC-requested independent review of those compliance systems. ASIC sought the review following its own examination of a significant number of breaches reported by the group. In the period from June 2010 to date, over 849,000 customers have been affected by reported breaches, requiring refunds of approximately $23 million.

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.’

Suncorp 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 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. Customers with questions can contact Suncorp on 1800 064 521.

Background

A compliance system comprises elements such as IT systems, documentation and human resources, which need to operate effectively together for an organisation to meet its legal obligations.

The breaches reported by Suncorp included 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.

Suncorp Group’s affected insurance and wealth management entities are Suncorp Metway Insurance Limited, Australian Associated Motor Insurers Limited, GIO General Limited, AAI Limited, Australian Alliance Insurance Company Limited, Suncorp Life & Superannuation Limited, Suncorp Financial Services Pty Ltd, Standard Pacific Consulting Limited and Guardianfp Ltd.

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Last updated: 02/02/2015 05:16