Breaking: Hollard insurance fined $2m for handling of claim that destroyed home

Insurance giant Hollard fined $2m after claim delays leave house uninhabitableTopic:InsurancePosted Fri 9 Oct 2026 at 12:21pmFri 9 Oct 2026 at 12:21pm, updated Fri 9 Oct 2026 at 12:26pmFri 9 Oct 2026 at 12:26pmThe Federal Court has ordered Hollard insurance to pay $2 million. (Supplied)Insurance giant Hollard has been fined $2 million for taking so long to process a home insurance claim that a house in regional Victoria became uninhabitable. The corporate watchdog ASIC sued Hollard in April last year, alleging the insurer "breached its duty of utmost good faith" in its handling of a claim made by a couple in October 2021, two days after a storm damaged their roof. The Federal Court ordered Hollard to pay $2 million for failing to promptly assess the damage, delaying rectification work and for failing to properly protect the property from further damage.It was also found to have taken too long to find temporary accommodation for the couple, failed to consider expert reports, and not clearly communicate with the couple throughout the claims process.Hollard has also been ordered to pay ASIC's legal costs. Originally denied the claimHollard is a privately owned insurance company and one of the largest in Australia, underwriting insurance for motor, home, contents, bicycle, pet, and business products. It is the company behind brands including CBA's insurance product, Everyday Insurance, Real Insurance, Australian Seniors and Steadfast.In 2024, the company had an estimated annual revenue of about $2.3 billion.Hollard initially accepted the couples' claim, before repeatedly delaying inspections, reports and repair work, only to then reject the claim in April 2023.ASIC said the rejection was based on a non-expert opinion, despite prior expert reports outlining the damage. ASIC alleged the combination of delays in decision-making, poor communication and ignoring expert advice exposed the couple to unnecessary and prolonged harm.