The Australian Consumers Insurance Lobby has again pressed for better oversight of expert reports after the corporate regulator published its latest claims handling review.

ACIL says the status quo is failing consumers, even after the introduction last August of a best practice standard for analyses prepared by hydrologists, engineers and other specialists.

It says the standard, developed by the Insurance Council of Australia, has not brought meaningful change.

“In practice, abuses persist and consumer outcomes remain compromised. While the industry’s 2024 expert report standard was presented as progress, it has failed to deliver genuine reform. The document is riddled with out clauses and lacks teeth.”

ACIL says it is writing to ICA to “formally signal that unless there is real progress, it will advocate for independent, publicly appointed assessors who advocate for consumers in the claims process.

“Consumers deserve confidence in the experts who decide the fate of their claims. If the industry cannot deliver that, then the model must change, because right now, it’s failing the people it claims to serve.”

ACIL chair Tyrone Shandiman says the group works closely with claims advocates, who are still seeing “an alarming volume of biased and poor-quality” expert reports.

“The problem is systemic and deeply rooted in the way insurers engage, oversee and influence the experts they appoint,” he said.

An ICA spokesperson says the industry has noted the lobby group’s response to the ASIC claims-handling review.

Other consumer advocates have said the review shows insurers are “once again ... failing customers [and are] not meeting expectations”.

ASIC released the findings yesterday, singling out expert reports and cash settlements as key areas of concern.

While insurers generally have well-documented quality assurance around builders and repairers, the review found oversight of independent experts such as engineers or hydrologists is not as developed.

“Quality assurance for independent expert reports generally focused on the timeliness of reports, rather than their quality or accuracy,” ASIC said.

“[Insurers] also relied on claims handling staff to identify errors in reports.”

On cash settlements, consumers were given “minimal” information around their right to seek reviews of payout offers.

ASIC commissioner Alan Kirkland said: “Insurers by law must provide a cash settlement fact sheet, which outlines options for settlement to customers who have made a claim.

“Those options should be explained in terms the customer can understand, rather than pointing to complex product disclosure statements.”