Australian Consumers Insurance Lobby (ACIL) has presented a comprehensive set of recommendations to the Federal Government Inquiry focusing on Standard Definitions and Standard Cover within the insurance industry, aiming to bolster transparency and fairness in the Australian insurance market.
In its submission, ACIL pinpointed several critical areas necessitating reform to address issues such as underinsurance and the intricacy of insurance policy terms. The organization underscored the importance of these changes in reducing consumer confusion and mitigating the adverse impacts associated with underinsurance.
ACIL’s recommendations encompass several key proposals:
- Prioritizing overarching principles over detailed definitions to enhance clarity and fairness in consumer insurance coverage.
- Advocating for a unified approach to terminology and definitions used in insurance policies to mitigate inconsistencies and facilitate consumer understanding of their coverage.
- Proposing that insurers furnish detailed fact sheets on frequently declined claims and common disputes, equipping consumers with essential knowledge about their policies.
- Suggesting that insurers either ensure adequate coverage is in place from the outset or inform customers about the risks of underinsurance at the policy issuance stage.
- Calling for educational programs designed to enhance consumers’ comprehension of their insurance policies and available coverage options, empowering them to make more informed decisions.
- ACIL has issued a call to government officials, industry leaders, and consumer rights groups to endorse these reforms, emphasizing the importance of establishing a market that not only safeguards consumers but also provides them with peace of mind and security through well-informed insurance choices.
Furthermore, the consumer advocacy group is rallying for support from the insurance industry for a concerted effort to reform stamp duty regulations in Queensland.
