The Australian Securities & Investments Commission (ASIC) has released its enforcement priorities for 2026, reaffirming its longstanding focus on consumer protection and maintaining the integrity of Australia’s financial markets. In addition to these enduring themes, ASIC has identified several new, discrete priorities for 2026. A number of these are directly relevant to the insurance sector and warrant close attention from insurers, insurtechs, brokers and managing general agents operating in Australia.
In announcing the priorities in an opening speech titled “The power and purpose of enforcement”, ASIC Deputy Chair Sarah Court emphasised the regulator’s concern about affordability pressures in insurance. She noted that “with premiums ever-increasing, claims rising and insurance becoming increasingly out of reach, we will continue to focus on this sector.” This message is reinforced by ASIC’s ongoing recent enforcement actions against several insurance-related businesses, including Hollard Insurance, Choosi Pty Ltd and RACQ, demonstrating it remains focused on what the ABC recently called its 'remarkable turnaround as the tiger that found its teeth'.
New enforcement priorities for 2026
Misleading pricing practices
A key new priority is misleading pricing practices that exacerbate cost-of-living pressures for Australian consumers. ASIC has indicated it will intensify its scrutiny of pricing representations across consumer-facing financial services, including insurance, where practices may mislead consumers about the true cost or value of products.
This focus is illustrated by ASIC’s Federal Court proceedings against RACQ, which allege that the insurer sent more than 570,000 misleading insurance renewal notices between 2019 and 2024. ASIC alleges that these notices, issued across multiple lines of business, displayed inflated “last period” premium figures. The effect was to make renewal premium increases appear smaller than they were, potentially discouraging customers from shopping around.
ASIC’s enforcement activity is not limited to insurers themselves. The regulator has also commenced legal action against insurtech Choosi Pty Ltd, alleging misleading conduct in relation to its online insurance comparison service. ASIC claims that Choosi represented it compared products from a range of insurers, when in fact it only compared products from a single insurer, Hannover, which were distributed by a Choosi-associated entity. ASIC alleges this conduct generated approximately AUD $61 million in commissions for Choosi, and it is seeking substantial penalties if the allegations are proven.
Claims and complaints management
Claims handling and complaints management remain key regulatory concerns. ASIC has made clear that delays, poor communication and inadequate complaint resolution processes will continue to attract enforcement action.
In March 2024, ASIC wrote to general insurers reminding AFS licensees of their obligation to act efficiently, honestly and fairly, including the requirement to handle claims in a timely manner. ASIC has also demonstrated a willingness to take decisive action, including its proceedings against Hollard Insurance, which allege serious claims handling failures. These include delays in decision-making, poor communication and the alleged disregard of expert advice in relation to a homeowner’s claim that took almost three and a half years to resolve.
ASIC has observed that poor claims handling practices are frequently linked to deficiencies in complaints handling. The regulator notes that the vast majority of complaints relating to general insurance arise from failures in the claims handling process.
Enduring priorities remain unchanged
Alongside its new priorities, ASIC has reaffirmed its “enduring priorities”, which target conduct that causes systemic harm to the financial system. These include misconduct undermining market integrity (such as insider trading, disclosure breaches and market manipulation), conduct affecting First Nations consumers, and behaviour posing a high risk of significant consumer harm—particularly to financially vulnerable customers.
ASIC will also continue to focus on systemic compliance failures by large financial institutions, emerging conduct risks, and governance and directors’ duties failures.
Ms Court noted that ASIC’s enforcement approach is becoming increasingly proactive and visible. Over the past year, ASIC has doubled the number of new investigations, nearly doubled court filings, increased criminal prosecutions, and secured significant penalties and custodial sentences for financial misconduct.
Business plan priorities affecting insurers
ASIC’s 2025–26 corporate plan identifies several operational priorities of direct relevance to insurance businesses.
Internal dispute resolution (IDR) is a key focus area, with ASIC reviewing licensees’ compliance with complaint reporting obligations, IDR processes and outcomes. ASIC will continue publishing IDR data, underscoring the importance of robust and transparent complaint handling frameworks.
ASIC will also examine the accuracy and transparency of general insurance premium disclosures, seeking to better understand consumer experiences and identify potential sources of confusion or harm. In addition, the regulator will review insurers’ use of cash settlements in claims, with a particular focus on how offers are presented and whether consumers may be disadvantaged.
While not insurance-specific, ASIC will also review how companies manage conflicts of interest involving directors and officers, and will benchmark whistleblower programs to assess compliance with the Corporations Act’s whistleblower protection regime.
What insurance firms should do now
In light of ASIC’s 2026 enforcement priorities, insurance businesses should consider taking the following practical steps to mitigate regulatory risk:
Taking proactive steps now will place firms in a stronger position to respond to ASIC scrutiny and demonstrate a genuine commitment to fair, transparent and consumer-focused outcomes. Need help? Contact us for a complimentary consultation - info@regnition.com
