Financial Sectors Grapple With High Reporting of Breaches

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Leading the ranks, the credit industry saw 31% of the total reported breaches, as stipulated in ASIC's annual disclosure. This was closely followed by the general insurance industry, which contributed 25%. The report aggregates data from financial services and credit licensees to provide insights into these trends.

According to statistics gathered by the licensees, there were 12,298 notifications submitted within the financial year. Of these, a striking 79% have impacted customers in financial or non-financial terms. This indicates a significant area of concern for industries striving to maintain customer trust and regulatory compliance.

Compensation figures reflect the repercussions of these breaches. By June 30, approximately $92.1 million had been distributed in compensation, affecting an estimated 494,000 clients. Such financial redress stresses the importance of organizational commitments to rectify and preempt future errors.

Diving into product-specific breaches, motor vehicle insurance emerged as a noteworthy sector with 1,935 incidents, succeeded by home contents insurance at 881, and home building insurance at 865 breaches. Home loans led the product breach category with 2,401 incidents, pointing towards critical areas for regulatory focus and improvement.

Initiated in October 2021, the reportable situations regime—previously termed breach reporting—mandates licensees to inform ASIC of any significant obligations' breaches. This includes suspected misconduct or investigations regarding core compliance failures, aiming to bolster transparency and accountability.

The original report and its detailed findings were highlighted by insuranceNEWS.com.au, offering stakeholders a crucial tool to assess and address these revelations. This underscores the importance of innovation in risk management practices across the industry to curtail future breach incidences.

Published:Thursday, 7th Nov 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Why Climate Risk Is Back on the Truck Insurance Agenda

13 Aug 2026: Paige Estritori

A fresh round of insurance industry warnings about climate exposure is a timely reminder for Australian truck operators that weather risk is no longer a background issue. Floods, bushfires, severe storms and prolonged road closures can affect far more than a single damaged vehicle. For owner-drivers and fleet managers, the larger concern is often the chain reaction: stranded equipment, missed delivery windows, cargo complications, depot damage and extended downtime while repair networks are under pressure. - read more

Affordability Pressure Puts Trade Cover Back Under the Spotlight

13 Aug 2026: Paige Estritori

Fresh industry attention on insurance affordability is more than a household budget story. For Australian tradespeople, rising premiums, higher repair costs and uneven disaster exposure can flow directly into how clients fund work, how projects are scoped and how small trade businesses protect their own equipment, vehicles and liability risks. - read more

Why Claim Clarity Matters More Than Ever for Income Insurance

13 Aug 2026: Paige Estritori

Recent complaints reporting from Australia's financial dispute resolution system has put a practical issue back in front of workers: the value of income insurance is not only in the monthly benefit promised, but in how clearly a policy works when a claim is made. - read more

What electronic work diaries mean for truck insurance

13 Aug 2026: Paige Estritori

Recent transport industry coverage has again put electronic work diaries in the spotlight, as more heavy vehicle operators look for practical ways to manage fatigue obligations without relying solely on paper records. For Australian trucking businesses, the shift is more than an administrative upgrade. It has direct implications for compliance evidence, driver management, incident investigation and the way insurers assess operational risk. - read more

Life Code Findings Put Income Protection Claims Back Under the Microscope

12 Aug 2026: Paige Estritori

The latest industry attention on Life Insurance Code compliance is another reminder that income protection insurance is not just about having a policy in place. For working Australians, the real test comes when illness or injury interrupts earnings and a claim needs to move from paperwork to practical financial support. - read more

Click for more Insurance News