Post-disaster fraud is rising alongside Australia’s worsening weather losses. With the Australian Securities and Investments Commission (ASIC) now formally naming claims intermediaries in disaster communities as a supervisory priority, what was a client communication issue has become a conduct compliance matter for brokers.
Australia’s storm season is open. The Bureau of Meteorology (BoM) confirmed in late August 2026 that a low-pressure system crossing central and south-eastern Australia marked the first genuine spring thunderstorm outbreak for the eastern states.
The timing matters more than usual. Extreme weather generated $4.8 billion in insured losses during 2025 – up 727% on the prior year – with insurers handling 294,000 claims from declared events, according to the Insurance Council of Australia (ICA). That volume is nearly six times the prior year’s figure.
Post-disaster fraud moves in the same direction. NRMA Insurance recorded a 65% increase in disaster chaser-related claims since 2023, with more than 1,700 of its customers caught up in such schemes over the past five years, according to an NRMA Insurance media release dated September 8, 2026. The insurer acknowledged the actual figure is likely higher, with many incidents going unreported.
The ICA put detected opportunistic insurance fraud for motor and property at $560 million in 2023, with undetected fraud estimated at around $400 million annually, according to the ICA’s Motor Insurance Policy Paper published in March 2025.
The most direct implication for brokers is regulatory. ASIC’s Corporate Plan 2026-27, released August 26, identifies consumer protection in areas where harm can spread quickly or have lasting consequences as a priority, including new work across insurance claims intermediaries in disaster-affected communities.
ASIC chair Sarah Court said: “That means reducing unnecessary friction for those trying to comply, while making it harder for those causing harm to avoid scrutiny and accountability.”
The designation does not arrive in isolation. The ICA opened public consultation on a redrafted General Insurance Code of Practice in June 2026. For the first time, insurers’ key commitments under the Code will be legally enforceable, and claims left undecided after 12 months will be automatically accepted, according to the ICA’s June 24 announcement.
ICA CEO Andrew Hall described what is driving the reform: “The world has changed and the Code needs to keep pace with those changes; customers face more frequent extreme weather, more complex claims, and new technology that is reshaping every part of the insurance process.”
The ASIC plan and the Code redraft together mark a shift in how intermediary conduct in post-disaster settings will be measured and enforced.
The core issue for broker clients is a coverage one – and it is not widely understood. The ICA has warned that allowing unauthorised tradespeople to carry out repairs could leave property owners out of pocket if insurers refuse to cover the costs. If work is performed without a licence or in breach of building codes, the cost may not be covered. The client’s ability to insure the property in the future could also be affected, according to ICA’s published guidance on disaster chasers.
A client who engages an unauthorised operator before formally lodging a claim, or signs a repair contract without insurer approval, may face delayed settlements, disputed liability, or claim denial. That outcome falls on the broker relationship – and now on the broker's conduct record.
General insurance broker complaints to the Australian Financial Complaints Authority (AFCA) rose to 788 in 2024-25, up from 447 the prior year. That figure remains low in system-wide terms, but it has nearly doubled year-on-year and now sits within a regulatory environment that explicitly flags intermediary conduct in disaster settings for scrutiny.
NRMA Insurance property assessor Judi “Spud” Hindson, who has worked with customers for 37 years, said the methods used by these operators are shifting. “Disaster chasers have definitely become more prevalent in recent years, and their tactics are evolving. I’ve had people report repeated drive-by inspections of their property, aggressive phone calls, and even correspondence suggesting their credit rating could be affected if they don’t pay up,” she said.
ICA director of mitigation and extreme weather response Liam Walter put the consequences plainly following the Southeast Queensland hailstorms in November 2025: “They can leave families, the elderly, and vulnerable Australians much worse off, with large bills and homes that remain damaged.”
In November 2025, the ICA announced a national fraud detection platform through its counter-fraud division, the Insurance Crime Intelligence Network of Australia (ICINA), built in partnership with Shift Technology and EXL. The system uses real-time analytics to alert fraud investigators to suspicious activity and allows insurers to coordinate investigations across the market.
ICINA CEO Andrew Gill described the intent: “By connecting insurers through secure, real-time intelligence sharing, we’re creating an early warning system that identifies fraudulent patterns across the entire market – stopping criminals before claims are paid.”
The platform signals a move from reactive claims management to pre-payment fraud identification. No public findings have been released yet; the platform was scheduled to begin development in early 2026.
National Insurance Brokers Association (NIBA) CEO Richard Klipin, writing in the Insurance Outlook Report 2026, was direct about the broker’s position in a post-event environment: “When something goes wrong, the first person you call is your broker.”
The ICA’s published guidance reinforces that role, urging property owners to deal with their insurer or an authorised professional – specifically naming brokers – before signing any repair contract.
NRMA Insurance executive general manager Luke Gallagher confirmed the activity is escalating. “Our Major Event Response, Assessing, and Claims teams are on the ground supporting customers when severe weather strikes, and residents often tell us that disaster chasers have been door knocking damaged properties in their area. Concerningly, it’s happening more and more,” he said.
With ASIC formally monitoring intermediary conduct in post-disaster communities, the window for brokers to establish documented client communication practices is before the next event – not after it.
