Income Insurance Online :: News
SHARE

Share this news item!

Financial Sectors Grapple With High Reporting of Breaches

Financial Sectors Grapple With High Reporting of Breaches

Financial Sectors Grapple With High Reporting of Breaches?w=400
The landscape of financial services in Australia is facing challenges as recent disclosures highlight the magnitude of self-reported compliance breaches across industries.
The Australian Securities and Investments Commission (ASIC) report for the last financial year has revealed that the insurance sector reported the second-highest number of breaches.

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
Source: Paige Estritori

Share this news item:

Insurance News

National Climate Risk Assessment Unveils Growing Insurance Challenges
National Climate Risk Assessment Unveils Growing Insurance Challenges
17 Sep 2025: Paige Estritori
The Australian government has unveiled its inaugural National Climate Risk Assessment alongside a comprehensive National Adaptation Plan, highlighting the heightened impact of natural disasters on insurance accessibility across the nation. With an urgent call to action, the government acknowledges the impending climate threats and commits to intensifying efforts towards emission reduction. - read more
ASIC Extends Relief on Distribution Rules for Insurance Providers
ASIC Extends Relief on Distribution Rules for Insurance Providers
16 Sep 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has announced an extension of the exemption allowing general insurance providers to forego appointing product distributors as authorised representatives. This decision comes with the introduction of a new legislative instrument, 2025/520, which renews the previous framework, originally established under instrument 2015/682. The relief will now continue until August 27, 2030. - read more
Cyber Insurance Becomes Essential Amid Rising Digital Threats
Cyber Insurance Becomes Essential Amid Rising Digital Threats
12 Sep 2025: Paige Estritori
The recent cyberattack on Fortnum Private Wealth, accompanied by ASIC's legal action, has spotlighted the critical risks cyber threats pose to financial advice companies in Australia. With digital integration intensifying across the finance sector, the owner of Fortnum, Entireti, plans to defend the case, underscoring the necessity for ongoing vigilance in cybersecurity measures. - read more
Swiss Re Foresees Rising Premiums Amid Increasing Global Risks
Swiss Re Foresees Rising Premiums Amid Increasing Global Risks
10 Sep 2025: Paige Estritori
In a comprehensive analysis, Swiss Re Institute predicts that global property and casualty insurance premiums will rise in tandem with GDP over the upcoming decade. This growth is driven by amplified natural catastrophe losses, asset accumulation, and heightened economic and litigation claims inflation. The institute's report outlines the evolving insurance landscape amid increasing global risks. - read more
Insurance Council of Australia Assists NSW Flood Claimants
Insurance Council of Australia Assists NSW Flood Claimants
09 Sep 2025: Paige Estritori
In response to the devastating floods that swept across New South Wales' Mid North Coast in May, the Insurance Council of Australia (ICA) is taking proactive steps to support the affected residents. Insurers, organised by the ICA, will be meeting with flood victims in Kempsey, Taree, and Port Macquarie to provide guidance and support as they navigate their insurance claims. - read more
Click for more Insurance News


Life Insurance Articles

Income Protection vs. Total Permanent Disability: Which Is Right for You?
Income Protection vs. Total Permanent Disability: Which Is Right for You?
Financial security is crucial in today's unpredictable world, where unexpected events can disrupt the stability and comfort of our daily lives. For Australians, protecting one's income and lifestyle from unforeseen circumstances is a key component of personal finance. - read more
Income Protection Insurance: A Lifeline for Freelancers and Contractors
Income Protection Insurance: A Lifeline for Freelancers and Contractors
In today's dynamic gig economy, freelancers and contractors are an essential part of Australia's workforce. Choosing flexibility and autonomy over traditional roles, these professionals enjoy the freedom to manage their schedules and select projects that align closely with their interests. However, this lifestyle brings unique challenges, especially regarding financial security. - read more
5 Key Factors to Consider When Shopping for Income Protection in Australia
5 Key Factors to Consider When Shopping for Income Protection in Australia
Welcome to our comprehensive guide on securing your financial future in Australia. In a world of uncertainties, income protection insurance plays a critical role in maintaining your financial security and peace of mind. - read more
Income Protection Insurance: Understanding Waiting Periods and Benefit Periods
Income Protection Insurance: Understanding Waiting Periods and Benefit Periods
Income protection insurance is a financial product designed to support individuals in the event that they are unable to work due to illness or injury. This type of insurance provides a regular income, helping to replace a portion of lost earnings and meet daily living expenses. Virtually anyone earning an income, especially those with financial dependents or significant debts, should consider the peace of mind that income protection can offer. - read more
From Illness to Injury: Understanding the Scope of Income Protection Insurance
From Illness to Injury: Understanding the Scope of Income Protection Insurance
In the uncertain times we face today, where both health and economic climates are unpredictable, safeguarding your financial stability becomes paramount. This is where income protection insurance steps in as an essential safety net. For many Australian families, it's the buffer that ensures life's financial commitments are met, even when ability to work is compromised. - read more


Start Here

Monthly Income Benefit:
Postcode:

All quotes are provided free on our secure server and without obligation. We respect your privacy.

Knowledgebase
Subrogation:
The process by which an insurance company seeks to recover the amount paid to the policyholder from a third party responsible for the loss.

Quick Links: | Income Insurance | Income Protection Insurance | Income Insurance For Self-employed | Income Insurance Quotes | Best Income Insurance Australia | Income Insurance For Employees | Income Insurance Comparison | Income Protection For Contractors | Temporary Income Protection | Income Replacement Insurance | Income Protection Policy
This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.
IMPORTANT: We are neither authorised nor licensed to provide finance or finance products. We do not recommend any specific financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party, qualified intermediaries with whom you can deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third part to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs.