Australians’ startling distrust of insurers revealed

Australians’ startling distrust of insurers revealed

Australians’ startling distrust of insurers revealed

The majority of Australians believe insurers unfairly avoid paying out after natural disasters and try to underpay when they do agree to a claim. Most people also have no idea what their policy covers…

Data released by UMR Research of 1000 people found that when they were asked to think of home insurance, and whether insurance companies tried to unfairly avoid paying out after natural disasters, 69% agreed and 15% disagreed. 

When asked if they believed that insurance companies tried to underpay when they did agree to pay out, 61% agreed and 13% disagreed. 

The survey also found that 52% of respondents were not sure if their home insurance would cover them for a bushfire (as opposed to a house fire), while 49% were not sure if their homes would be covered for cyclones and tornadoes. 

''People know more about their phone bill than their home insurance policy conditions, and they should scrutinise their policy more closely,'' said UMR managing director John Utting. 

An Insurance Council of Australia spokesman, Campbell Fuller, said the industry was aware of perceptions that it did not pay out claims, but in reality more than 98 per cent of claims were paid out across 2011 and 2012.


 

5 Comments
  • Mark 14/01/2013 11:56:10 AM
    Im assuming they are talking about the direct Insurers, perhaps they need speak to a Broker and get the advice and expertise needed to make educated insurance decisions
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  • Still Cranky 14/01/2013 11:57:49 AM
    Much of the blame for such public ignorance can be sheeted home to media beat ups and outright lies. The ICA is far too reactive in defending the industry against slurs after the event when it should be consistently promoting its positives, especially in respect of claims management and outcomes. For every negative story there are thousands of positive ones that the public never hear about because they are not deemed newsworthy. How about regularly highlighting some of the eye-popping statistics of claims paid out? What about featuring more happy customers in frequent advertising blitzes? Why not invite journos and politicians to be educated about the role and functions of insurance as we were when we started off in the industry? The bad press arises almost entirely from a lack of knowledge or from vested interest groups with sinister political motives.
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  • Danial Powell 14/01/2013 12:36:23 PM
    Very interesting article, particularly putting peoples lack of knowledge about insurance into perspective. Over Christmas I received a grilling about "insurers" despite the fact that I stated as simply as possible, on a number of occasions " I am broker, I make insurer pay client!"
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