The manner in which CommInsure handled the whistleblower activities which gave rise to regulatory investigations around its claims handling arrangements is the subject of closer scrutiny by the Australian Prudential Regulation Authority (APRA).
APRA chairman, Wayne Byres, has signalled to a Parliamentary Committee that there were questions around whether the whistleblower provisions of the Life Insurance Act 1995 had been adhered to with respect to CommInsure.
While making clear that the primary underlying customer cases relating to CommInsure were a matter for the Australian Securities and Investments Commission (ASIC), Byers said “APRA takes a close interest in such matters, given they can provide important insights into the strength of an institution’s governance, risk management and risk culture”.
He said that among the issues being looked at by APRA was the treatment of the whisteblower.
“We met with the whistleblower that brought the CommInsure matters to public attention, and are considering whether the whistleblowing provisions in the Life Insurance Act 1995, which are designed to prevent the identification and victimisation of whistleblowers, have been adhered to in this matter,” the APRA chairman said.
