The discussion paper that improved Consumer understanding …
PULL UP A CHAIR The Australian Government produced a discussion paper that addressed improving consumer understanding of insurance.
A fair and well-functioning insurance sector requires consumers to be well informed. Consumers’ ability to make efficient and appropriate choices with respect to insurance can be enhanced by the availability and accessibility of relevant information disclosed. Conversely, a lack of transparency or effective disclosure practice makes it harder for consumers to make informed decisions about products to meet their needs…
The risk of ineffective disclosure include inadvertent under insurance, lack of understanding of the insurance product purchased and purchase of an insurance cover which does not serve its purpose. 1
The need for consumer understanding is highlighted by 2018 Banking Royal Commission. There, evidence showed that ASIC found automotive add-on insurance sold by Allianz and four other insurers was expensive, of poor value and provided consumers with very little or no benefit. The insurers are refunding more than $118 M to some 213,000 policy holders. 2
This volume is privately research based and specifically focuses on The Australian Automotive Insurance sector. The focus examines insurance conduct and its impact on consumers and the smash repair industry.
The work exposes automotive insurance tricks, traps and predatory practices with the intent of addressing gaps in consumer and smash repair industry
To be forearmed is forewarned. It is too late after the event.
1 The Treasury. 2019
Disclosure in General Insurance: Improving Consumer Understanding. Discussion
Paper, The Australian Government. January.
2 The Guardian,2018.
Banking Royal Commission: Allianz to refund $45.6 m over ‘junk’ insurance
products. 18 Sep. Australian Associated Press.