Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis
Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis
4
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
For two consecutive days, the flood-affected residents of Queensland have been voicing their concerns during the ongoing deliberations of a federal inquiry, tasked with examining insurers' responses to the catastrophes of 2022.
The inquiry, in its concluding phase, conducted its second public hearing in the Logan area on April 10th, 2024.
Daniel Mulino, the Chair of the House of Representatives Standing Committee on Economics, highlighted the importance of these sessions. According to him, insights from the affected populations convey invaluable perspectives that enrich the committee's understanding. More interactions with community representatives are expected to occur in the Far North Queensland and Tasmania regions, with proceedings for Victorians set in the towns of Maribyrnong, Rochester, and Heathcote on esteemed dates in April. Findings from these series of hearings are to be formally presented in a report by September 30.
During the latest session, the committee pinpointed the problematic nature of insurance lingo, such as the term 'SOW' (scope of works), which can exacerbate the frustration of those struggling through intricate claims procedures. Melinda McInturff, the Community Plus+ Community Resilience Coordinator, urged insurance providers to communicate more effectively and avoid terminology that may elude the understanding of the general public.
The inquiry revisited concerns including subpar cash settlement proposals and the deployment of professional evaluations to quantify losses-topics previously brought up with insurers, watchdogs, and consumer groups. McInturff revealed instances of insurers pressuring claimants into swift decision-making on settlements, citing an example of a family who felt compelled to settle for a meager $50,000 on the threat of having to furnish receipts for all lost items in the midst of post-disaster chaos.
Additional grievances noted were the procedures adopted by some insurers, which seemed to undervalue the repair costs incurred by flood victims. McInturff explained that frequent on-site evaluations by varying experts hinder the claims process, causing further perplexity and delay.
Emma Webster, the Flood Recovery Solicitor from Tenants Queensland, highlighted the need for the insurance sector to consider both renters and landlords. Insurance protection should cater to renters' needs, ensuring they have shelter post-calamity, while aiding landlords in repair efforts. Webster underscored that existing insurance frameworks place tenants at a stark disadvantage, excluding them from benefits like alternative accommodation provisions in the aftermath of such events.
Today's dialogue also uncovered the insufficient support insurance firms offer to their most vulnerable clients. McInturff referenced a domestic violence sufferer who reached out to her insurer on March 27, yet remains without a response. In the context of disasters elevating domestic stress levels, the urgency for such situations to be prioritized becomes even more evident.
The proceedings of this federal inquiry lay bare the critical interplay between natural disasters and the insurance industry. As voiced by countless individuals throughout these hearings, the demand for transparent and empathetic communication, equitable treatment of claimants, and consideration of the precarious positions some tenants find themselves in, is unambiguous and is expected to shape future policy discussions and outcomes.
Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travelers embark on international journeys without any form of travel insurance. This statistic has prompted industry leaders to urge Australians to reconsider the importance of securing adequate coverage before traveling abroad. - read more
Insurance Australia Group (IAG) has reported a notable 4.3% increase in gross written premium (GWP), reaching $17.1 billion for the fiscal year 2025. This growth is accompanied by a net profit after tax of $1.36 billion, marking a significant rise from the previous year's $898 million. The company's reported insurance profit stands at $1.74 billion, with a margin of 17.5%, and a return on equity improving to 19.4%. Shareholders are set to benefit from a full-year dividend of 31. - read more
Recent developments in the global financial markets have sparked discussions about potential benefits for Australian insurance policyholders. A significant sell-off in the insurance sector on Wall Street has led analysts to speculate that Australian insurance premiums could see a reduction in the near future. - read more
A recent landmark ruling in New South Wales has significantly altered the liability landscape for the construction industry. The court's decision removes the ability for developers and builders to rely on proportionate liability defences under the Design and Building Practitioners Act 2020 (DBP Act), thereby increasing their exposure to claims related to building defects. - read more
The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database (NCPD) statistics, revealing a substantial increase in public liability insurance premiums over recent years. According to the data, premiums have risen by 40% since 2015, a rate that surpasses general inflation and places additional financial strain on businesses across the country. - read more
Life insurance is a fundamental component of a robust financial plan, yet its significance is often underestimated. It serves as a safety net, ensuring that your loved ones are financially secure in the event of your absence. Understanding life insurance is the first step towards safeguarding your family’s future. - read more
Life insurance is a cornerstone of financial planning for Aussie families, offering protection and peace of mind. But what happens when the bustling flow of life brings changes? This is where a life insurance review comes into play. A life insurance review is a thorough analysis of your existing policy to ensure it aligns with your current life circumstances and financial goals. - read more
Life insurance, a contract between an insurer and a policyholder, is designed to provide financial protection to loved ones in the event of the policyholder's death. For parents, this protection takes on a new level of significance. The birth of a child heralds a profound shift in priorities, with a focus on safeguarding the future of one's family. Hence, understanding life insurance options becomes a crucial aspect of responsible parenting. - read more
For many millennials, navigating the complexities of personal finance and future planning can feel like a bewildering journey. Among these financial responsibilities, life insurance emerges as a paramount consideration. More than just a safety net, life insurance can be the cornerstone of a sound financial strategy, providing peace of mind for both the policyholder and their loved ones. - read more
Being prepared when it comes to life insurance claims can make a world of difference. Proper preparation helps you prevent delays and denials, ensuring that your loved ones receive the financial support promised by your policy without unnecessary hold-ups. By paying attention to the details, you can streamline the claims process, giving you and your family peace of mind during what is already a stressful time. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
Knowledgebase
Professional indemnity: An insurance that provides cover for liability incurred in the course of exercising a profession.
