Federal Labor is urging the Turnbull government to consider a royal commission into the Commonwealth Bank life insurance scandal.
Labor frontbencher Jim Chalmers says revelations from a joint Four Corners-Fairfax investigation into the bank's insurance arm CommInsure, of sick policy holders who were denied payouts, were "despicable, appalling, inhumane".
He wants the bank's chief executive Ian Narev to front a Senate committee.
Dr Chalmers said it was a test for the government and Assistant Treasurer Kelly O'Dwyer, who were quick to pull the trigger on a royal commission into the union movement.
"Your heart goes out to these victims of such shabby and disgusting practices," he told the ABC on Tuesday.
Nationals senator John Williams also told the national broadcaster he believes the matter will be examined by a Senate inquiry, and eventually a royal commission.
Mr Narev agreed Canberra "can have a very important role to play".
He said the bank was working hard to build an ethical culture but conceded mistakes would happen.
"When we do we have to acknowledge them and we have to fix them," he told ABC radio on Tuesday.
It comes as CommInsure's former chief medical officer Benjamin Koh revealed doctors were pressured to change their opinions and delay payouts for sick customers, Fairfax Media reports.
The federal government will wait for a corporate watchdog investigation into the Commonwealth Bank life insurance scandal before it considers a royal commission.
The government has asked the Australian Securities and Investments Commission for an urgent report into unethical behaviour at the bank's insurance arm CommInsure to determine whether it's a systemic issue.
The matter will also be investigated by an existing Senate inquiry, recently extended to look at the life insurance industry.
"We are absolutely shocked by the allegations that have been raised," Assistant Treasurer Kelly O'Dwyer told ABC radio on Tuesday.
"We need to get to the bottom of the facts."
A joint Four Corners-Fairfax investigation claims CommInsure used unethical tactics to deny payouts for sick and dying policyholders.
CommInsure's former chief medical officer revealed doctors were pressured to change their opinions and delay payouts for sick customers.
Nationals senator John Williams believes the matter will eventually be examined by a royal commission.
Opposition financial services spokesman Jim Chalmers described the revelations as "despicable, appalling, inhumane".
He is calling on the government to consider a royal commission and wants the bank's chief executive Ian Narev to front a Senate committee.
It was a test for the government and Ms O'Dwyer, who were quick to pull the trigger on a royal commission into the union movement, he said.
"Your heart goes out to these victims of such shabby and disgusting practices."
Mr Narev agreed Canberra "can have a very important role to play".
He intends meeting affected customers to hear their stories.
But while the bank was working hard to build an ethical culture, it would make mistakes.
"When we do, we have to acknowledge them and we have to fix them," he told ABC radio.
