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: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Club Marine Introduces Land-Based Insurance for Race Boats

24 Mar 2026: Paige Estritori

Club Marine, Australia's leading boat insurance provider, has announced a new partnership with the Australian Offshore Powerboat Club (AOPC) to offer specialised insurance coverage for race boats while they are on land. This initiative addresses a significant gap in the market, providing protection against accidental loss, damage, theft, or malicious damage to vessels during storage and transit. - read more

Significant Decline in Australian Commercial Insurance Rates

24 Mar 2026: Paige Estritori

Recent data from global insurance broker Marsh indicates a notable decline in commercial insurance rates across the Pacific region, with a 12% drop recorded in the last quarter of 2025. This marks the steepest decrease since early 2024, suggesting a softening market and increased competition among insurers. - read more

Cyclone Reinsurance Pool Reduces Premiums in High-Risk Areas

24 Mar 2026: Paige Estritori

The Australian Competition and Consumer Commission (ACCC) has released its fourth insurance monitoring report, revealing that the government's cyclone reinsurance pool has led to reduced insurance premiums for customers in medium to high cyclone risk areas. However, the report also highlights that premiums remain high for many households and small businesses, with affordability continuing to be a significant concern. - read more

Club Marine Launches Land-Based Insurance for Race Boats

28 Feb 2026: Paige Estritori

Club Marine, Australia's leading boat insurance provider, has expanded its offerings to include land-based insurance coverage for race boats. This initiative is designed to support participants in the Australian Offshore Superboat Championship (AOPC) by providing protection for their vessels while on land. - read more

Pantaenius Australia Offers New 90-Day Lift Cover for Boat Maintenance

28 Feb 2026: Paige Estritori

Pantaenius Australia, a specialist in marine insurance, has introduced a 90-day lift cover policy designed to provide boat owners with third-party liability insurance while their vessels are out of the water for maintenance or survey purposes. - read more

Click for more Insurance News

Boat Insurance Articles

The Ultimate Guide to Boat Safety and Insurance Compliance in Australia

Boating is a wonderful way to enjoy the beautiful waters of Australia. Whether you're fishing, sailing, or simply enjoying a day out on the water, safety should always be a top priority. - read more

The Must-Have Safety Equipment for Australian Boaters

Boating is a beloved pastime in Australia, offering endless opportunities to explore the stunning coastline and sparkling waterways. However, enjoying your time on the water safely is paramount. Proper safety measures are essential to ensure that every boating activity is as enjoyable as it is secure. - read more

Boat Insurance Hacks Every Aussie Skipper Needs to Know

Navigating the waves around Australia's vast coastline is a pastime many hold dear. However, with great adventure comes the responsibility of ensuring your marine vessel is insured adequately. Skippers Down Under are no strangers to the unpredictable challenges at sea, and the significance of securing a suitable insurance policy cannot be overstressed. - read more

Discover the Safe Harbor: Expert Advice for Choosing the Right Boat Insurance Policy

Navigating through the tranquil blue waters of Australia can be the highlight of any skipper's day, but the true peace of mind comes from knowing your vessel is protected. Boat insurance isn't just another tick on your checklist; it's an essential safeguard for your maritime lifestyle. In this article, we delve into why choosing the right boat insurance policy is not a luxury, but a necessity for boaters across Australia. - read more

Insurance 101: Understanding Key Terminology for Recreational Boat Owners

Boat ownership is a popular recreational activity in Australia, but it’s also important for boat owners to understand the potential risks involved. That's where boat insurance comes in. It's a form of financial protection that helps to cover the costs of any damages, accidental losses, or other unexpected events while using your boat. - read more

Knowledgebase

Coinsurance:
A percentage of the cost of a covered healthcare service that you pay after you have paid your deductible.

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 do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then 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 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 always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.