Suncorp Group has completed making a series of improvements to its compliance systems in its life and general insurance businesses following a large number of ‘significant breaches.’
Suncorp Group has completed making a series of improvements to its compliance systems in its life and general insurance businesses following a large number of ‘significant breaches.’
Between June 2010 and June 2013, 849,000 Australian customers were affected by the reported breaches, requiring refunds of approximately $23 million.
The breaches included failure to provide promoted discounts to eligible multi-policy general insurance customers, some seniors 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.
As requested by the Australian Securities and Investments Commission, Suncorp undertook an independent review of the systems and implemented a number of changes including investment in systems and increased monitoring and reporting within the group's compliance functions.
“ASIC welcomes the report,” said ASIC deputy chairman Peter Kell, “which followed a positive and constructive process with Suncorp. We are pleased that the Suncorp Group Board has given this matter the priority and attention it deserves. The independent review has led to necessary improvement in Suncorp's compliance systems, which will ultimately benefit consumers.
“Where significant breaches occur,” he continued, “it is important that a licensee report to ASIC and take appropriate steps to rectify identified problems and remediate affected customers.” (continued.)
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ASIC said it remains committed to ensuring the improved compliance processes of Suncorp result in appropriate outcomes for consumers.
“ASIC’s release finalizes this issue. The breaches, which related to insurance policy discounts, have all been rectified and impacted customers refunded as appropriate,” said a Suncorp spokeswoman. “At the request of ASIC, Suncorp conducted an independent review of the associated compliance systems. A range of improvements have been implemented in response.
“ASIC is supportive of Suncorp’s approach and the steps taken to rectify the issue.”
Between June 2010 and June 2013, 849,000 Australian customers were affected by the reported breaches, requiring refunds of approximately $23 million.
The breaches included failure to provide promoted discounts to eligible multi-policy general insurance customers, some seniors 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.
As requested by the Australian Securities and Investments Commission, Suncorp undertook an independent review of the systems and implemented a number of changes including investment in systems and increased monitoring and reporting within the group's compliance functions.
“ASIC welcomes the report,” said ASIC deputy chairman Peter Kell, “which followed a positive and constructive process with Suncorp. We are pleased that the Suncorp Group Board has given this matter the priority and attention it deserves. The independent review has led to necessary improvement in Suncorp's compliance systems, which will ultimately benefit consumers.
“Where significant breaches occur,” he continued, “it is important that a licensee report to ASIC and take appropriate steps to rectify identified problems and remediate affected customers.” (continued.)
#pb#
ASIC said it remains committed to ensuring the improved compliance processes of Suncorp result in appropriate outcomes for consumers.
“ASIC’s release finalizes this issue. The breaches, which related to insurance policy discounts, have all been rectified and impacted customers refunded as appropriate,” said a Suncorp spokeswoman. “At the request of ASIC, Suncorp conducted an independent review of the associated compliance systems. A range of improvements have been implemented in response.
“ASIC is supportive of Suncorp’s approach and the steps taken to rectify the issue.”
