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Insurance Business | 02 Mar 2016, 09:20 AM Agree 0
The regulator has called for further improvements from insurers in a bid to help consumers make better choices and curb underinsurance
  • CHRIS CALDICOTT | 02 Mar 2016, 10:27 AM Agree 0
    ASIC, its time you realised that the information supplied by brokers to clients is broad and comprehensive they fully explain under insurance. Whether the insured listen is another question. Also what brokers come up against is the incessant direct marketing and cheap on line insurance. If householders insurance was placed only through professional outlets you would not have this problem. You do not allow Solicitors or Doctors to operate and or give advice on line so why don't you legislate against on line ill informed people selling insurance on line
  • Paul | 02 Mar 2016, 10:29 AM Agree 0
    Alternatively they could recommend using an Insurance Broker who is charged with giving advice and recommending all of the above. Let's not forget how the Insurers reacted to FSR and made the PDS docs equal to war and peace so that policy wordings became indecipherable. And good luck with the Key Facts Sheet. I have just read one from a leading insurer and it is woefully inadequate at conveying the information needed by a client.
  • Phil - WA | 02 Mar 2016, 04:11 PM Agree 0
    Great comments from both Chris and Paul. Since when are insurers or insurance intermediaries for that matter deemed to be quantity surveyors! The General advice provided to clients is just that without getting down to the tin tacks that surveyors get down to in determining the exact cost of rebuilding a residence. Its one thing to drive home the need for R & R SI to a client, another totally when the client asks how much they should insure for without putting your neck on the chopping block. When all is said and done it is usually the price that decides for them and that's why a direct insurer has so much appeal to them. General advice from a direct insurer? - watery at best!
  • MARTIN | 02 Mar 2016, 04:49 PM Agree 0
    Chris' comment is almost there for advice. Us Brokers do the best we can to get our clients fully insured and point out pitfalls of not doing so, however, you can lead a horse to water but....." How many direct insurance customers have ever read a policy wording (PDS)? How can any Insurer Broker or Insurer tell someone what their Contents are worth without going thru the sock drawers. Ask a female client to add up her wardrobe clothing on a replacement basis and they feint!
    Time that the consumer took control of their own destiny instead of having to blame "I was not told that"! How about we get real, consumers generally want the cheapest cover possible and are pretended experts on the value of their house. Look at the Victorian bushfires a few years(+) ago. How many were actually Insured and how many were actually fully Insured? OK easy to blame the Insurers and Brokers. Consumers should use their brains as it does not cost much more to be fully insured. We can point it ( underinsurance)out BUT cannot tell a consumer/client that they are actually underinsured. Absolute rubbish and totally unrealistic from regulators.
    M
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