Life Insurance Australia :: News
SHARE

Share this news item!

Suncorp's AAMI and GIO fined for breaches of internal review timeframes

Suncorp's AAMI and GIO fined for breaches of internal review timeframes

Suncorp's AAMI and GIO fined for breaches of internal review timeframes?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The New South Wales State Insurance Regulatory Authority (SIRA) has recently imposed a fine of $100,000 on Suncorp's compulsory third party (CTP) brands AAMI and GIO for failing to meet their internal review timeline obligations.
This marks the first time that a civil penalty has been imposed on CTP insurers under the Motor Accident Injuries Act.

According to SIRA, the fines stem from breaches of AAMI and GIO's internal review timeframes between April 1, 2018 and August 31, 2020. The regulator began investigations in response to complaints about delays that customers were experiencing when seeking internal reviews. Despite issuing letters of censure to AAMI and GIO, SIRA found further breaches during their monthly performance monitoring of internal reviews in September 2020.

As a result, SIRA launched a further investigation into the ongoing issues between April 2018 and August 2020, identifying breaches and contraventions of the Act, the Motor Accident Guidelines, and their license conditions. Show cause notices were issued to the insurers in May 2022, leading to the decision to impose a civil penalty of $50,000 each for AAMI and GIO. The Act provides for fines of up to $110,000.

In determining the appropriate penalty, SIRA took into consideration the experience of customers, the acknowledgement by AAI Limited of their conduct, the significant efforts made to address the backlog of internal reviews and communicate options to customers, and the development and implementation of a remediation plan. The regulator has stated that they will continue to closely monitor the performance and compliance of the insurers.

This news serves as a reminder of the importance of timely and efficient internal reviews for insurers, as well as the need for compliance with regulatory guidelines. Suncorp's CTP brands, AAMI and GIO, will have to pay close attention to their internal processes in the future to avoid similar penalties.

Published:Friday, 27th Jan 2023
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Significant Health Insurance Premium Increase Set for April 2026
Significant Health Insurance Premium Increase Set for April 2026
10 Mar 2026: Paige Estritori
Australian health insurance policyholders are set to experience a substantial increase in their premiums, with an average rise of 4.41% scheduled to take effect from April 2026. This adjustment marks the most significant hike since 2017 and is expected to impact over 15 million Australians who hold private health insurance policies. - read more
Private Health Insurers Refund $4.8 Billion to Policyholders Post-Pandemic
Private Health Insurers Refund $4.8 Billion to Policyholders Post-Pandemic
10 Mar 2026: Paige Estritori
In a significant move, Australian private health insurers have refunded nearly $4.8 billion to policyholders, fulfilling their commitment not to profit from the reduced access to health services during the COVID-19 pandemic. This substantial refund comes after widespread cancellations of elective surgeries and other medical appointments during lockdowns, which led to considerable savings for insurers. - read more
AMA Report Reveals Erosion of Value in Private Health Insurance
AMA Report Reveals Erosion of Value in Private Health Insurance
10 Mar 2026: Paige Estritori
The Australian Medical Association (AMA) has released its latest Private Health Insurance Report Card, highlighting a concerning trend where Australians are paying higher premiums for private health insurance while receiving diminished value in return. The report indicates that nearly 70% of policies now contain exclusions, limiting the coverage available to policyholders. - read more
AUSactive's New Insurance Offering: Enhanced Protection at Lower Costs
AUSactive's New Insurance Offering: Enhanced Protection at Lower Costs
10 Mar 2026: Paige Estritori
AUSactive has unveiled a new insurance solution designed specifically for fitness and active health professionals. This initiative aims to provide enhanced protection while offering lower premiums compared to existing market options. - read more
Health Insurance Reforms: Inclusion of Natural Therapies from 2026
Health Insurance Reforms: Inclusion of Natural Therapies from 2026
10 Mar 2026: Paige Estritori
In a significant policy shift, Australian health insurers will begin offering rebates for a range of natural therapies, including Yoga, Pilates, Tai Chi, Shiatsu, Naturopathy, Western herbal medicine, and the Alexander Technique, starting early 2026. This change follows legislative amendments allowing these therapies to be covered under private health insurance for the treatment of health conditions or as part of health management programs. - read more
Need a Bigger Boat?
Image for Need a Bigger Boat?We provide direct access to the best Boat Loan rates and options in Australia through our national panel of specialist marine finance brokers. Simply complete our quick & easy Boat Loan quote enquiry form to see if you qualify - and to gain access to the best Boat Loan offers from our broker panel.


Life Insurance Articles

Top 5 Reasons to Consider Life Insurance While You're Young
Top 5 Reasons to Consider Life Insurance While You're Young
When you’re young, life is all about new experiences and making plans for a promising future. While factors like travel, career, and relationships often take centre stage, one aspect often overlooked is life insurance. It might seem like something to consider later in life, but starting a policy while you're young can be a savvy financial move. - read more
Life Insurance and Estate Planning: What You Need to Know
Life Insurance and Estate Planning: What You Need to Know
Life insurance and estate planning are critical components of financial security. They ensure that your loved ones are protected financially when you are no longer around. By understanding these tools, you can take significant steps to secure your family's future. - read more
The Savvy Consumer’s Guide to Purchasing Life Insurance in Australia
The Savvy Consumer’s Guide to Purchasing Life Insurance in Australia
As the landscape of finance and personal security evolves in Australia, the importance of being insured has never been more prominent. In a world of changing family dynamics, economic pressures, and higher living costs, life insurance stands as a bastion of support ensuring the well-being of loved ones in the event of unforeseen circumstances. - read more
How to Review and Update Your Life Insurance Policy as Your Family Grows
How to Review and Update Your Life Insurance Policy as Your Family Grows
Life insurance is an essential safety net for families, providing financial security when it's needed the most. As your family grows, the importance of having a well-structured life insurance policy becomes even more critical. In the busy lives we lead today, it’s easy to overlook this crucial aspect of financial planning. However, ensuring your coverage meets your family's evolving needs is vital. - read more
Common Mistakes to Avoid When Comparing Life Insurance Policies
Common Mistakes to Avoid When Comparing Life Insurance Policies
Choosing the right life insurance policy is one of the most important decisions for Australians, especially for those who are middle-aged or older. Life insurance provides financial security for your loved ones in the event of your passing, ensuring that they are not burdened with financial hardships. - read more


Start Here !
life insurance
Apply now for your free Insurance assessment and price comparisons!

Start Here

Life Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Waiting Period:
The time period that must pass after filing a claim before the insurance coverage becomes effective or benefits are paid.