CommInsure had relied on out-of-date medical definitions to deny claims,ASIC found.Credit:Michael Clayton-Jones
Under current laws ASIC has little power to examine insurance claims,with the Corporations Act expressly carving out"handling insurance claims"from its definition of a financial service.
In October ASIC called for the carve-out to be scrapped when it published its review of the life insurance sector.
It has reiterated those calls,stating that many of the issues it had previously identified had reared their head in the CommInsure investigation.
"A range of the concerns ASIC has identified in relation to CommInsure were also identified as industry-wide issues in ASIC's report,and there are measures being undertaken by ASIC and industry to address these issues,"ASIC said.