ASIC Home Insurance Review Highlights Need to Improve Advice and Disclosure Rules
Targeted News Service |
The findings in today's
Though the ICA had been working with ASIC on these issues for many years,
However,
"ASIC's report is a welcome contribution to the policy debate on financial advice and disclosure in the general insurance industry,"
"Though the ASIC review and the accompanying research show some gaps in consumer understanding of the products they purchase, overall insurers and their staff are serving the needs of their customers by providing information within the constraints of the current regulatory framework. However, the experience of ICA members is that this framework unnecessarily restricts the ability of licensees to provide simple product advice."
At present, general insurers are providing only broad guidance in most circumstances to customers who are buying or renewing their household insurance, and are referring them to a Product Disclosure Statement for the fine details.
He said the ICA would welcome an examination of how disclosure documents could be improved or supplemented to improve outcomes for consumers without adding to the regulatory burden.
Though ASIC identifies some enhancements that could be made to improve the provision of information to consumers,
"ICA members will individually benchmark ASIC's suggestions against their own practices and procedures,"
"The ICA's financial literacy initiative,
The ASIC review follows data released by the Financial Ombudsman Service (FOS), which indicated that consumer understanding of home insurance products had increased markedly over the past few years.
According to its latest annual report, disputes about home building insurance have fallen 22 per cent, with FOS attributing this to a much higher prevalence of insurance covering flood, greater consumer awareness about flood cover and improved industry practice.
CC AutoTriage6yd-141029-30VitinMar-4916559
Copyright: | (c) 2014 Targeted News Service |
Wordcount: | 645 |
PCI Elects New Officers to the Board of Governors at Annual Meeting
Professional Photographers of America Announces Malpractice Claim Totals
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News