Dodgy insurance insiders to bikies and criminals targeting pension pots warned by ASIC

The insurance and superannuation industry is being put on notice amid warnings that pensions will be a new target for crooks.

Dodgy insurers who rip off clients with false promises of discounts and accountants and financial planners who move money for bikies are in the sights of Australia’s corporate watchdog.

Superannuation funds are also being urged to pour millions into the fight against scams, amid warnings that pension pots will be a new targets for criminals.

Australian Securities and Investments Commission chair Joe Longo has put the insurance and superannuation industry on notice in an interview to outline his agency’s priorities for the year.

Mr Longo also warned financial services operators that new laws coming into force next year will open a Pandora’s box of intelligence for ASIC.

Soaring insurance premiums have been one of the major contributors to Australia’s inflation that has pushed interest rates higher, with premiums up 14 per cent in 2024.

Mr Longo said that ASIC was not a price regulator, but he questioned whether customers were getting value for money.

“We’ve all experienced significant, at least I have, I can tell you, premiums on household policies and car insurance,” he said.

“Policy holders and consumers … should have a lot more transparency about why they are paying premiums of that magnitude.

“Most of all, don’t mislead and deceive me about the premium in the first place by making promises about discounts that you’re not keeping.”

Joe Longo put the insurance and superannuation industry on notice in an interview where he outline the agency’s priorities for 2025. Picture: Aaron Francis / The Australian

ASIC launched action against QBE Insurance alleging customers were ripped off with false discount offers.

The Federal Court action alleged that the “loyalty discounts” for up to half a million customers were reduced, “in some cases to nil.”

Mr Longo also took aim at Australia’s $4 trillion superannuation industry, saying it was not doing enough to fight against scams.

He warned that criminals were looking at superannuation savings as the next frontier.

“We’ll be encouraging the superannuation funds to develop capability in detecting scams,” he said.

“At this stage we haven’t seen a big uptick in superannuation fund members being scammed, we are concerned about that happening.”

Banks were already pouring cash into new technology to keep customers cash safe, but Mr Longo said it was also the super funds’ responsibility.

Joe Longo says new laws to come into effect in July next year will help agencies target criminals. Picture: John Feder / The Australian.

The warning comes as new laws – to come into effect in July next year – will force accountants, lawyers, and real estate to hand over data about suspected money laundering activities.

Mr Longo, who also sits on the board of the Australian Criminal Intelligence Commission, said the new laws, known as “tranche 2”, would help agencies target criminals.

“We’re expecting that we will have better data that will enable us to take more action,” he said.

“At the moment we just don’t have the data, we know things are going wrong but don’t know where to look.”

There are almost 20,000 financial planners who will come under the new laws.

They will be compelled to hand over data, including the true owners of wealth which are often hidden in trusts.

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Originally published as Dodgy insurance insiders to bikies and criminals targeting pension pots warned by ASIC