The Federal Court ordered Hollard to pay $2 million after ASIC sued the company over a home‑insurance claim filed in October 2021, two days after a storm damaged the roof of a regional‑Victoria house.

ASIC alleged that Hollard failed to promptly assess the damage, delayed repair work, postponed finding temporary accommodation for the owners, and ignored expert reports that confirmed the extent of the damage.

The court also required Hollard to cover ASIC’s legal costs and confirmed that the $2 million fine is the first civil penalty imposed on an insurer for breaching the duty of utmost good faith.

Hollard’s chair, Sarah Court, said the decision sends a clear warning to insurers that poor claim handling can cause serious harm to consumers and will no longer be tolerated.

After the court case, Hollard settled with the couple for more than $1.5 million, paying for the total loss of the building and temporary accommodation. In 2024 the company reported an estimated revenue of about $2.3 billion.

The case highlights that insurers must act fairly, communicate clearly, and make timely decisions, otherwise they risk heavy penalties and damage to their reputation.