Home insurers are overwhelmingly paying cash to settle claims rather than managing repairs, leaving vulnerable Australians to shoulder unexpected costs, according to a report released on Monday by the Australian Securities and Investments Commission.

The corporate regulator reviewed a sample of home building claims from Cyclone Jasper, which hit far north Queensland in December 2023, and found cash settlements were used in more than 63% of final claims.

"The easy option for insurers can be the expensive one for homeowners," ASIC commissioner Alan Kirkland said, adding that consumers were often left paying the difference out of their own pocket when payouts fell short, Luca Ittimani reports for Guardian business.