Australian home insurance cash settlements leaving customers short-changed

Australia's corporate regulator (ASIC) has found that home insurers are predominantly settling claims with cash payouts rather than managing repairs or rebuilding, resulting in unfair outcomes for vulnerable homeowners. The practice leaves Australians exposed to cost overruns when repairing cyclone-damaged homes, prompting ASIC to call for larger, more realistic payouts. This approach disproportionately disadvantages already vulnerable policyholders who lack resources to cover the gap between insurance settlements and actual repair costs.