The General Insurance Code Governance Committee has admonished insurers over a lack of data and failure to understand underlying causes as claims-related breach numbers increased by one-third.

The committee’s Annual Industry Data and Compliance Report, published today, records 70,325 overall breaches for 2024-25 – up from 58,385 the previous year. (The 2023-24 figure has been revised down from a previously published 67,394, after an insurer said it over-reporting 9009 breaches.)

Among the 2024-25 breaches, 41,140 related to claims handling and delays, up 33%. The obligation to provide updates on the progress of a claim every 20 business days was breached 18,350 times, an increase of 67%.

 

General insurance code breaches

 

“When customers make a claim, they are often dealing with stressful and uncertain circumstances,” committee chair Veronique Ingram said.

“Delays in updates or decisions can add to that stress and make it harder for people recover and move on.”

Of particular concern for the committee, many insurers were unable to report how long customers waited when time frames were exceeded, “limiting their ability to identify recurring issues and address the causes” of delays.

“It is crucial that insurers have the data to learn from breaches – they cannot simply report breaches and dismiss them as human error, only to report them again the next year,” Ms Ingram said.

The committee says supporting vulnerable customers remains a key area of focus, but complaint trends show the problem is not solved.

The number of breaches of vulnerability commitments dropped to 1540 from 1729, but complaints in this area increased 70%.

By comparison, complaints across the industry rose 30% to 1.8 million.

“Insurers have reported a range of initiatives aimed at improving the identification and support of customers experiencing vulnerability, and the reduction in reported breaches may reflect these efforts,” the report says. “However, the rise in complaints suggests these efforts have not translated into meaningful outcomes for customers.”

There were 114 significant breaches in 2024-25, down from 115, and the financial impact of breaches dropped 14% to $1.3 million. Insurers blamed 77% of all breaches on staff negligence or error.

See the full report here.