ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

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.

The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against Hollard Insurance, alleging a breach of the duty of utmost good faith.

This action is in response to what ASIC describes as Hollard's "egregious" handling of a home and contents insurance claim filed by a couple from regional Victoria.

ASIC's case against Hollard revolves around the insurer's handling of the couple's claim following storm damage to their property in October 2021. The regulator claims Hollard's excessive delays and failure to conduct essential make-safe work have rendered the couple's home uninhabitable, leading to extensive moisture, mould, and decay issues that necessitate demolition and rebuilding.

Sarah Court, ASIC's deputy chair, highlighted the seriousness of the delays, stating that such prolonged inaction is unacceptable and potentially unlawful. The legal action aims to address growing concerns about increasing general insurance complaints and send a strong message about the unacceptability of such delays.

The claim, initially filed in October 2021, took Hollard nearly three and a half years to resolve. The insurer rejected the claim in April 2023, 18 months after its submission. Following this, the couple sought intervention from the Australian Financial Complaints Authority, which directed Hollard to provide compensation for non-financial losses and substantiated the storm as the proximate cause of the damage.

Hollard eventually consented to a cash settlement exceeding $1.5 million. However, ASIC contends that despite initially accepting the claim, Hollard delayed decisions regarding repairs, took over nine months to arrange a structural engineer inspection, and postponed the provision of temporary accommodation.

Responding to the legal action, a Hollard spokesperson acknowledged the proceedings and expressed support for ASIC's efforts in fostering consumer-positive outcomes. They noted Hollard's cooperation with ASIC but refrained from further commenting due to the ongoing nature of the legal matter.

Published:Monday, 14th Apr 2025
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

CHU Introduces Cyber Protection in Strata Insurance Policies

06 May 2026: Paige Estritori

In a significant move to bolster the resilience of Australian strata communities, CHU Underwriting Agencies has integrated cyber protection into its residential strata insurance policies. This enhancement specifically targets the growing risk of social engineering fraud, a form of cybercrime where malicious actors impersonate trusted contacts to manipulate payment instructions. - read more

Suncorp's Strategic Shift in Strata Insurance Classification

06 May 2026: Paige Estritori

Suncorp, a leading Australian insurer, has strategically reclassified its strata insurance business from consumer to commercial, signalling a concerted effort to expand its footprint in the strata insurance market. This move aligns with the company's broader strategy to enhance its commercial insurance offerings and leverage synergies within its portfolio. - read more

CHU Expands Strata Insurance Capacity to Support Larger Developments

06 May 2026: Paige Estritori

CHU Underwriting Agencies, Australia's largest strata insurance underwriting agency, has announced a significant increase in its single risk capacity, more than doubling it to $690 million. This substantial enhancement reflects CHU's commitment to accommodating the evolving landscape of strata developments across the nation. - read more

Suncorp's Strategic Reinsurance Move to Bolster Financial Stability

06 May 2026: Paige Estritori

Suncorp has recently finalised a substantial reinsurance agreement valued at AU$2.4 billion, spanning five years. This strategic move is designed to cap natural hazard costs in approximately 90% of scenarios, thereby enhancing the company's financial resilience. - read more

Click for more Insurance News

Business Insurance Articles

The Essential Guide to Liability Insurance for Freelancers

Liability insurance is a type of coverage designed to protect you from claims arising out of injuries or damages to other people or property. For freelancers, who often juggle multiple projects and clients, liability insurance can offer a safety net that reduces financial risk and instability. - read more

The Cost of Being Uninsured: Why Every Australian Small Business Needs Liability Coverage

Welcome to the complex world of running a small business in Australia where navigating through liability risks is as crucial as managing daily operations. This article is crafted to illuminate why every Australian small business needs liability coverage — a shield to protect against potential financial catastrophes. - read more

Public Liability Insurance Claims: What to Expect and How to Prepare

When it comes to navigating the complex waters of insurance, understanding public liability insurance claims is crucial for businesses and individuals alike. Public liability insurance serves as a safeguard, protecting against the financial repercussions that arise from accidents or injuries that occur on your premises or through your operations. In this introductory section, we will delve into the essence of public liability insurance and underline its significance. - read more

Freelancer or Employee? Understanding the Difference and the Liability Implications

The contemporary business landscape in Australia is witnessing a significant shift towards the gig economy, with a growing number of professionals opting for the flexibility and autonomy that freelancing offers. This trend has not only revolutionized the way work is performed but has also introduced new dynamics in the legal distinctions between freelancers and traditional employees. - read more

Start Here !

Knowledgebase

No-Fault Insurance:
A type of car insurance where your insurer pays for your damages regardless of who is at fault in an accident.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. 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 party 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. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.