ASIC's 2026-27 General Insurance Priorities: A Review of 'Disaster Chasers' and Claims Management Firms, Motor Premium Disclosure Failures and Cash Settlements After Cyclone Jasper

The Australian Securities and Investments Commission (ASIC) has told general insurers where it will concentrate its supervision in 2026-27. The priorities appear in a supervisory letter dated 30 September 2026, signed by ASIC Commissioner Alan Kirkland. The letter combines one new activity, a review of for-profit claims management firms, with follow-up on earlier work on motor insurance premiums and on cash settlements after Cyclone Jasper. It also sets out how ASIC will coordinate with other regulators. This article summarises the letter and states plainly what it does not cover.

A new review of claims management firms

The main new item is a review of for-profit claims management firms, including those described as disaster chasers. These businesses help consumers with home insurance claims, often after a major weather event. ASIC says the review started in the first quarter of 2026-27.

The letter lists the concerns. ASIC wants to examine how these firms sell their services and acquire clients, the fee and cancellation terms they impose, the role they play in claims handling and complaints handling, and their relationships with repairers and suppliers. ASIC says it will seek information from insurers and from the firms themselves "to identify any practices that may result in consumer harm."

The wording is careful. The letter identifies concerns to be examined, not findings of misconduct, and this article does not suggest that any named firm has breached the law. For consumers, the practical point is that anyone who hires a third party to manage a home claim should read the fee and cancellation terms first.

Motor insurance premium disclosure

The letter reports on ASIC's review of how insurers disclose motor premiums, published as Report 838 (REP 838). ASIC found that no sampled insurer explained the key factors behind a premium or why it had changed. Insurers that charged more for paying by instalments did not clearly state that paying annually could save 10 to 20 percent. Five insurers did not compare year-on-year changes in key policy features, such as the excess and the insured value, in their renewal notices.

ASIC wants clearer quote and renewal documents, and says it has given individual feedback to the insurers it sampled. The letter does not announce enforcement action in connection with the review.

Cash settlements after Cyclone Jasper

The third item concerns home claims after Cyclone Jasper. ASIC found that at least 63% of finalised home claims included a cash settlement. Offers were often based on quotes from the insurer's preferred suppliers, and ASIC has doubts about whether those offers cover what repairs actually cost. It also found that insurers need to give clearer information about what a settlement includes and what review rights the policyholder has, that vulnerable consumers were not always identified, and that insurers lacked data on how their offers changed during negotiation.

ASIC has asked all insurers to act on these points and says it will monitor progress through its supervision. The letter does not state what an adequate settlement should be, and it does not set a deadline for the changes.

Industry code and wider reviews

The letter notes that the Insurance Council of Australia plans to seek ASIC approval of a new General Insurance Code, after public consultation in July 2026. ASIC says it will assess the code under Regulatory Guide 183. Insurers may also be drawn into wider ASIC reviews of sustainability reporting, governance and financial reporting.

Working with other bodies

ASIC says it will work with the Australian Prudential Regulation Authority (APRA), the Australian Financial Complaints Authority (AFCA) and the General Insurance Code Governance Committee. It will engage with members of the Council of Financial Regulators on cyber risks, and will harmonise data collection under the Council's Better Regulation roadmap. ASIC also invites examples of unnecessary regulatory burden from the industry.

What the letter does not say

The letter sets no compliance deadlines other than the first-quarter 2026-27 start of the claims management review. It does not address add-on insurance products or premium funding, so readers should not assume those are covered. It is also a supervisory letter, not legislation or a legally binding rule, so its practical effect depends on how ASIC follows up with individual insurers.

What policyholders can do

These suggestions are drawn from the issues ASIC raised, not from advice in the letter itself.

The letter points to several practical steps. When a quote or renewal arrives, compare the excess and insured value with last year's, because ASIC found some insurers did not make that easy. If paying by instalments, ask what the annual price would be. If offered a cash settlement after a disaster, ask what it includes, how it was calculated and what the review rights are. Consumers who are unhappy with an outcome can raise a complaint with their insurer and, if it is not resolved, with AFCA.