ACIL issues recommendations to improve insurance transparency and fairness
ACIL issues recommendations to improve insurance transparency and fairness | Insurance Business Australia
Insurance News
ACIL issues recommendations to improve insurance transparency and fairness
Government officials, industry leaders, and consumer rights groups called to back reforms
Insurance News
By
Roxanne Libatique
The Australian Consumers Insurance Lobby (ACIL) has put forward a set of recommendations to the Federal Government Inquiry focused on Standard Definitions and Standard Cover in the insurance industry.
The initiative seeks to enhance transparency and fairness within the Australian insurance market.
In its submission, ACIL identified several critical areas needing reform to alleviate issues like underinsurance and the complexity of insurance policy terms. It emphasised that such changes are vital to diminish confusion among consumers and the adverse effects linked to underinsurance.
ACIL’s recommendations
Key proposals from ACIL include:
overarching principles over detailed definitions to improve clarity and fairness in consumer insurance coverage
a unified approach to the terminology and definitions used in insurance policies to avoid inconsistencies and help consumers better understand their coverage
requiring insurers to provide detailed fact sheets on frequently declined claims and common disputes, which would arm consumers with important knowledge about their policies
requiring insurers to either ensure adequate coverage is in place from the start or to inform customers about the risks of underinsurance when a policy is issued
educational programs aimed at boosting consumers’ understanding of their insurance policies and the coverage options available to them, empowering them to make more informed choices
ACIL called on government officials, industry leaders, and consumer rights groups to back the reforms, highlighting the need for a market that not only protects consumers but also offers them peace of mind and security through better-informed insurance decisions.
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