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ASIC sues Mercer over alleged reporting failures
The Australian Securities & Investments Commission (ASIC) has launched legal action against Mercer Super alleging it failed to report investigations into serious member services issues, including incorrect insurance premium refunds for dead members. ASIC has alleged Mercer Super had inadequate systems between October 2021 and September 2024 to comply with its requirement to promptly report ongoing investigations into significant breaches of its core obligations. Deputy Chair Sarah Court said the corporate regulator allege a pattern of longstanding and systemic failure by Mercer Super to comply with the law. “These aren’t just technical breaches. Allowing investigations into significant issues to drag on for months or, in some cases, over a year without reporting them to ASIC demonstrates a lack of care for customers and can put more at risk,” Court said in a media release. “As one of Australia’s largest super funds, Mercer Super should have had adequate systems in place to manage and monitor critical issues like this.” Examples of alleged systems failures included failing to report seven investigations, and reporting another one more than a year late, into:insurance premiums not being refunded correctly after member
Insurance
Debt crisis: 1-in-10 Australians owe for healthcare
One out of 10 Australians has been forced into debt for medical expenses, according to a new survey. The numbers come from insurance comparison company Compare The Market, which found 12% of Australians have had medical debt. It was overwhelmingly linked to specialist treatments and consultations, which accounted for 36% of the respondents' debt. Close behind at 30% was medically necessary but elective surgery and dental work at 29%. While some elective surgeries are covered by Medicare, waiting lists can see patients delay the procedure for years or bear the expenses out of pocket. Medicare does not cover dental care. Other reasons for debt include cosmetic procedures, physiotherapy, emergency surgery, expensive prescriptions and mental health care. Half of respondents with existing medical debt reported it at $10,000 or less, and only 2% said they had medical debt exceeding $100,000. However, a further 28% of Australians responded that they would not be willing to put themselves into debt for a medical-related expense at all. The company's Executive General Manager of Health, Steven Spicer, encouraged Australians to look into private health insurance options to alleviate the cost of some procedures.
Insurance
Allianz profits up, but misses income estimates
Allianz reported a record high operating profit last quarter, but missed estimates of core net income. Operating profit was EU€4.24 billion, up 6.3% year-over-year and in line with estimates. Shareholders’ core net income was EU€2.55 billion, rising 1.5% year-over-year but below estimates by 6%. “Allianz’s first quarter performance and our confirmed outlook underscore our financial strength and resilient business model, which benefits from the attractiveness of our customer value propositions amid geopolitical and economic uncertainty,” said Allianz CEO Oliver Bäte. “In fact, we view this uncertainty and change as a catalyst for innovation and growth, allowing us to pursue new opportunities and expand our offerings. As the world’s leading insurance brand, we are well-positioned to benefit from the global flight to trust, with the ability to meet growing customer demand for protection and retirement solutions.” Core earnings per share last quarter were EU€6.61, growing by 2.9%. Total business volume across the company rose by 11.7% to EU€54 billion. Business volume was up across sectors, with Life/Health seeing the largest percentage increase at 18.6%. Property-Casualty, its largest segment, reported a 5% increase
Insurance
Why more people are saying 'no' to private health cover
Unsure if “going private” with health cover is a wise idea? Relax, you’re not alone. It's not an easy decision at the best of times, and seismic shifts in government policy over the past 35-plus years have only added to consumer confusion. Without boring you with the histrionics between 1984, when the Hawke government introduced Medicare, and the late 1990s, private health insurance uptake tanked from over half (54%) to around a third. Then along came the Howard government’s attempt to throw the health insurance industry a lifeline, which it did by ‘coercing’ people into taking out private cover or copping a levy, seeing uptake bounce to just under half. Let's fast forward to 2025, and the fix around whether or not ‘going private’ stacks up is well and truly in.Coerced into coverRecent surveys suggest the vast majority of Australians may – if it wasn’t for a government-mandated penalty – choose to abandon their private health insurance, on the basis that what they’re paying just isn’t value for money. According to Graeme Hughes Consumer Expert at Griffith Business School, many Australians are reluctant to take out private health cover due to rising premiums, often outpacing wage growth, making the cost-benefit analysis
Insurance
Risky business: Bridging the insurance gap
Australians facing steep insurance premium rises in a world of disasters are sharing a global problem. The solutions are out there, but they are complex. Australia faces a massive insurance gap that leaves home and business owners increasingly vulnerable to either dealing with disasters without being fully insured or paying more for premiums even if they live thousands of kilometres from a disaster zone. That potential lack of insurance cover also has sobering ramifications for those seeking a mortgage and home ownership, especially in a world where climate-linked disasters are increasing. The potential solutions are complex and will require government action. It’s a global problem that Australia knows too well. In 2022, when disastrous floods hit Queensland and NSW, the insured losses alone were more than $6 billion and about 48 percent of Australian losses were not covered by insurance. Everyday Australians are facing steep insurance premium rises and the number now seen as being under insurance stress has increased from 10 percent in 2022 to 15 percent last year. That leaves many people in vulnerable areas underinsured or uninsured and even those who can get insurance are paying much more.The disaster impact

Insurance
Corporate cop sues super giant in insurance crackdown
Australia's corporate regulator has broadened its wave of legal action in the A$4.1 trillion (US$2.6 trillion) superannuation industry over delayed insurance payouts by prosecuting the country’s biggest pension fund, AustralianSuper. The Australian Securities and Investments Commission (ASIC) said it was suing AustralianSuper in the Federal Court over the delayed processing of nearly 7,000 death benefit claims. ASIC has alleged AustralianSuper failed to process death benefit claims efficiently, honestly and fairly between 1 July 2019 and 18 October 2024, when it took between four months and four years to assess at least 6,897 claims. It also alleged the super fund failed to pay benefits as soon as practicable after the death of at least 752 members, in one case taking 1,140 days to pay and in others taking 438, 412 and 366 days. ASIC Deputy Chair Sarah Court said it was vital that death benefit claims were processed in a timely manner. “Delays are likely to cause further pain and anxiety to people who are already suffering from grief, making what is already a difficult time even harder,” Court said in a media release. “At its heart, this matter is about protecting vulnerable Australians and their families." La
Insurance
Health insurance skyrockets as CHOICE inspects policies
CHOICE’s analysis of hospital insurance pricing data showed that health insurers are pushing up the price of premium cover at a much higher rate than advertised. Every year, the health insurers must seek government approval to increase their premiums on 1 April. However the insurers only need approval to raise premiums for existing policies, not new policies. CHOICE found that health insurers avoid the premium approval process by closing existing policies and opening a new policy with the same or similar cover, but with a jacked-up price. This has caused out-of-control health policy inflation, with Gold hospital coverage in particular rising by around 45% in the past four years. There was also an 11.9% increase across all hospital and extras policies. This includes the big five health funds, Medibank, Bupa, HCF, HBF and NIB, which have implemented substantial price rises.Source: CHOICEIn 2021, a NSW family would pay on average A$5380 for a gold hospital policy (with a $750 excess) per year, this has now risen to $7840 per year. One of the largest increases was in Western Australia, where HBF’s Gold policy is 60-69% more expensive than it was selling four years ago. According to CHOICE, there are a range of tactic
Insurance
Health insurance hospital cover and payments flatline
The number of Australians with private health insurance covering hospital treatment and total hospital treatment benefit payments barely increased in the last quarter. The Australian Prudential Regulation Authority (APRA) said 12,341,521 people, or 45% of the population, were covered by hospital treatment cover at 30 September 2024, which was a slight increase on June 2024. Releasing its Quarterly private health insurance membership and benefits summary, APRA said this was an increase of 105,601 (0.9 %) compared to June 2024. Family policies increased by 14,578 and single policies increased by 25,325 but the largest increase in coverage during the quarter was for people aged between 25 and 29 (14,723). Hospital treatment benefit payments were also flat in the September 2024 quarter with insurers paying A$4,822 million, which was 0.05% more than the June 2024 quarter. Hospital treatment benefits were:$3,483 million for services such as accommodation and nursing$719 million for medical services$620 million for medical devices or human tissue items. Among Australia’s largest private health insurers are Medibank (ASX: MPL), Bupa, HCF (Hospital Contribution Fund) and NIB (ASX: NHF). APRA publishes statistics on the pr