Trust in the insurance industry to handle personal information has fallen, and privacy complaints about insurers are increasing faster than the overall rate, Australian Privacy Commissioner Carly Kind has told an insurance industry audience.

Speaking at an Australian Insurance Law Association webinar, Ms Kind said the Office of the Australian Information Commissioner (OAIC) is seeing a rapid increase in privacy complaints, with 3948 received in 2025-26, up 73% on the previous year.

Insurance accounted for just over 3% of complaints, placing it ninth among sectors, but complaints involving insurers were increasing faster than the overall trend, she said.

Trust in insurers to use personal information had fallen from 40% in the previous survey to 28%.

“Is this a reflection of falling trust? Either way, it is something to be alert to,” Ms Kind said.

She said the findings are particularly significant given the results of the OAIC's 2026 Australian Community Attitudes to Privacy Survey, which found that only 10% of Australians believed organisations handled their data fairly.

“The broader issues of rising privacy complaints are troubling. Our survey showed a great deal of frustration from individuals in trying to get their concerns addressed”, she said.

Most privacy complaints involving insurers centred on Australian Privacy Principle 6, covering the disclosure and use of personal information, and APP12, which provides individuals with rights to access their information.

Ms Kind said privacy complaints should not simply be viewed as a workload issue for the regulator, but as a potential indicator of systemic non-compliance and weaknesses in first-instance dispute resolution.

She also warned insurers and other organisations to treat privacy as part of risk management, particularly given continuing cyber threats.

“Good privacy practice and building privacy by design into your approach is insurance for your business and good for the insurance industry. It is essential to your risk mitigation” she said.

The Commissioner also noted an important recent development in the insurance industry’s use of sensitive personal information, with the passing of legislation banning life insurers from using adverse genetic testing results to deny or limit cover.