The Australian Securities and Investments Commission plans to review funeral insurance providers and expects to complete an ongoing probe of life insurers’ customer services adequacy this financial year.

These inquiries are among key FY27 priorities the commission has outlined in a letter to industry.

“ASIC continues to receive reports from Australian Financial Complaints Authority and consumer groups about issues with [funeral insurance], particularly where costs exceed benefits,” the letter said.

“In light of these concerns, ASIC expects to review insurers’ practices related to funeral insurance in the second half of 2026-27.”

Findings of the customer services probe are likely to be released in the third quarter of FY27.

“Central to providing good service to customers is getting the basics right, which for an insurer includes retaining a copy of the insurance policy, calculating premiums correctly and paying out the right benefits,” the letter said. 

“Data from complaints and breaches reported to ASIC continues to suggest that these basic services are a significant cause of issues and concern for consumers.” 

The commission says life insurance may also be included in its multi-year review of the superannuation sector. 

Other priorities include misconduct targeting vulnerable customers, cyber resilience, and the impact of artificial intelligence usage. 

“ASIC will also monitor the work of the Council of Australian Life Insurers to draft a new Life Insurance Code of Practice following the final report of the independent review of the current code,” the letter said. 

Click here for the letter.