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Insurance Business | 27 Oct 2015, 03:53 PM Agree 0
A policy review of 35 insurance products has found a gap in coverage that could leave some Australians vulnerable with one advocate calling on the insurance industry to address its 'failures.'
  • md | 28 Oct 2015, 09:57 AM Agree 0
    Most travel policies exclude pre-existing conditions unless you request the cover. You are asking consumers to purchase on cover, but everyone wants the cheapest price, you cant have both. If you want the cover you have to pay for it and get the right advice. See a broker!
  • Paul | 28 Oct 2015, 10:05 AM Agree 0
    It really is a bigger issue than mental health. Insurers simply should not be allowed to sell travel cover. Just this week I had a referral for bank travel policy underwritten by a major insurer that left the consumer with no cover for his wife who was stuck in the Philippines. I am a senior practitioner and a Fellow of ANZIIF and I struggle to get my mind around the numerous conditions, exclusions and limitations of travel insurance. Financial Services Reform has been a disaster as insurers can flog their dodgy products through banks and travel agents without the corresponding requirement to give advice. Choice and other groups should agitate for a level playing field in insurance. The additional cost to employ competent people to give advice would level up the playing field for brokers who actually give advice for a living, are properly trained and experienced and carry expensive Professional Indemnity.
  • John | 28 Oct 2015, 11:32 AM Agree 0
    My issue with CHOICE is that they only seem to review direct offerings. They're reviewing the bottom of the market through to the middle of the market.

    Whilst they don't claim to review every policy in the market, the inference is that their top ranked policy is one of the best in the market. This isn't really the case, the best direct policies are pretty average when compared to a premium personal policy or a commercial policy. Some of the policies that they review should honestly get a 1 or 2 out of 10.

    They seem not to include broker policies because there is no certainty of pricing etc. This is true to a small extent but it also does the public a disservice because top grade policies that address a lot of issues are never reviewed & the public never realise that they exist.
  • Olivia | 28 Oct 2015, 02:52 PM Agree 0
    While I completely agree that reading a travel policy is particularly problematic for consumers (and indeed the industry as a whole), the PDSs do tend to have a section that says: "What we do not cover" and then often a reference to the fineprint. The issue is that people don't have/make time to read. I doubt very much you'd make a purchase like a television without researching it's features and what it can and cannot do, but no one seems to do this for travel policies.
    And I agree with your points, John. CHOICE have only looked at direct to market products that are very much a case of "get what you pay for." For some strange reason, consumers seem to want to buy the Rolls Royce whilst paying for the Kia.
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