AFCA unveils key systematic issues in insurance industry
AFCA unveils key systematic issues in insurance industry | Insurance Business Australia
Insurance News
AFCA unveils key systematic issues in insurance industry
Issues resulted in over $61 million in remediation returned to consumers
Insurance News
By
Roxanne Libatique
The Australian Financial Complaints Authority (AFCA) has released its latest Systematic Issues Insights Report, reflecting its commitment to transparency.
The report shares data and findings from recent systematic issue cases across the Australian financial industry, including insurance, to help financial firms improve industry practice.
From January to June 2023, AFCA identified and investigated systemic issues resulting in over $61 million in remediation returned to 145,480 consumers, up from the $38 million returned to 186,924 in the previous report covering July to December 2022.
Systematic issues in the insurance industry
AFCA identified the following key systematic issues in the general insurance industry:
unfair settlement of motor vehicle claims
incorrect settlement of theft motor vehicle claims
unfair settlement agreements
inadequate processes to implement AFCA determinations
Meanwhile, the key systematic issues in the life insurance industry are
inadequate notice of premium increases
misleading product information provided to non-English speaking customers
unclear disclosure of medical definition
Analysing its findings, APRA advised financial services providers to use the report and its insights to improve their practices and customer experience.
“AFCA’s role in identifying and reporting systemic issues benefits consumers who have not lodged a complaint with AFCA but who may, nonetheless, have been impacted by a systemic issue. The early identification and resolution of systemic issues can reduce consumer complaints and helps to minimise consumer harm,” it said.
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