Insurance Deductible: the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".
The professional services industry has undergone a significant transformation in recent years, largely due to the integration of digital technology into everyday business operations. From cloud computing to mobile applications, the digital landscape for professional practices has expanded, offering new avenues of efficiency and connectivity. - read more
Professional Indemnity Insurance is a critical safety net for professionals, offering protection against claims of negligence or breach of duty arising from the services they provide. It helps cover legal costs and any compensation that might be awarded if you are found to be at fault. - read more
In an era dominated by digital innovation, understanding the crossroads of cybersecurity and indemnity insurance is more critical than ever for IT professionals. As cyber threats evolve with increasing sophistication, the concept of cyber liability has come into sharp focus, pinpointing the potential legal and financial risks associated with data breaches and cyber-attacks that professionals in the information technology sector may face. - read more
Intellectual Property (IP) stands as one of the core components of any modern business, particularly for startups where innovation is often the primary competitive edge. Understanding and protecting IP is not just about safeguarding ideas; it's a critical aspect of maintaining a business's unique market position and its long-term viability. - read more
Professional Indemnity Insurance (PII) is a type of insurance designed to protect professionals against claims of negligence or breach of duty made by their clients. It covers the costs and expenses incurred in defending against such claims, as well as any resulting damages or compensation that may be awarded. - read more
Professional Indemnity Insurance is a critical safety net for professionals, offering protection against claims of negligence or breach of duty arising from the services they provide. It helps cover legal costs and any compensation that might be awarded if you are found to be at fault. - read more
Intellectual Property (IP) stands as one of the core components of any modern business, particularly for startups where innovation is often the primary competitive edge. Understanding and protecting IP is not just about safeguarding ideas; it's a critical aspect of maintaining a business's unique market position and its long-term viability. - read more
Insurance serves as a cornerstone in the foundation of a thriving business, mitigating various risks that can surface in the unpredictable world of commerce. At its heart, business insurance is about safeguarding the company's financial stability. It provides a critical safety net, ensuring that a single event doesn't have the power to derail years of hard work. - read more
In an era dominated by digital innovation, understanding the crossroads of cybersecurity and indemnity insurance is more critical than ever for IT professionals. As cyber threats evolve with increasing sophistication, the concept of cyber liability has come into sharp focus, pinpointing the potential legal and financial risks associated with data breaches and cyber-attacks that professionals in the information technology sector may face. - read more
Professional Indemnity Insurance (PII) is a type of insurance designed to protect professionals against claims of negligence or breach of duty made by their clients. It covers the costs and expenses incurred in defending against such claims, as well as any resulting damages or compensation that may be awarded. - read more
Transparency in Premiums: ACCC Highlights Importance of True Costs in Renewals
Transparency in Premiums: ACCC Highlights Importance of True Costs in Renewals
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In a significant move for consumer clarity, the Australian Competition and Consumer Commission (ACCC) has recommended that insurance companies prioritize transparency when displaying previous premium costs in renewal notices.
According to the ACCC, the key disclosure figure should be the "actual" amount paid in the past year by policyholders.
The ACCC argues that from a consumer's viewpoint, the final price settled last year is the pivotal piece of information. "Discounts or changes may be made to an initial quote for a range of reasons, but consumers want to know what their final bill is or was," a spokesperson explained exclusively to insuranceNEWS.com.au.
Recent reporting by insuranceNEWS.com.au, drawing on insights from an ABC investigation, underscored discrepancies at RACQ Insurance, where renewal notices referenced premiums before any discounts. This practice showcased a nominal 1.5% rise based on the initial quoted premium, contrasting sharply with a 39% spike when focused on the actual amount previously paid.
These findings emerge from the ACCC's Northern Australia insurance inquiry, which revealed gaps in consumer awareness about the precise amounts paid on policies. The inquiry also suggested that insurers should clearly communicate the past sums insured and any applicable excesses to enhance customer understanding regarding policy details and pricing dynamics.
Despite these recommendations being highlighted both in an interim and final ACCC report from 2020, the Federal Government has yet to formally respond. Meanwhile, the Insurance Council of Australia notes that displaying the past year’s premium alongside the renewal quote is already a requirement under the current insurance practice code.
This presentation of prior premiums, however, might omit adjustments or substantial discounts negotiated during the policy term, as indicated by an industry representative.
Responding to the ABC's findings, RACQ asserts they have not received prior criticisms regarding their communication strategy. Policyholders typically engage directly if they require further clarification. "We will, however, be reviewing this feedback to identify any opportunities to further clarify our messaging for members,” a spokesperson remarked.
On the regulatory front, the Australian Securities and Investments Commission (ASIC) has pledged to scrutinize renewal disclosures and inspect prevailing industry practices potentially impacting consumer transparency.
Consumer Action Law Centre CEO Stephanie Tonkin emphasized the risks of misleading pricing to the public. Stating they haven't heard of this practice directly from the people who call the helplines, but any misleading representation of actual savings and prices – similar to the kind of strategies supermarkets are being criticised for – is concerning, especially in the midst of a cost-of-living crisis.
Published:Wednesday, 6th Nov 2024 Source: Paige Estritori
In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress. Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied. - read more
The Insurance Council of Australia (ICA) has raised concerns about the potential fallout from a fragmented regulatory approach to artificial intelligence and automated decision-making in the industry. There is fear that this patchwork of reforms could result in conflicting requirements, heavier compliance burdens, and increased industry confusion. - read more
A recent analysis by the Australian Prudential Regulation Authority (APRA) reveals that over 90% of general insurers and reinsurers anticipate climate change will influence their underwriting procedures, posing new challenges to the industry. - read more
In a remarkable case highlighting the severe consequences of insurance fraud, an individual's attempt to inflate a theft insurance claim has resulted in the total denial of compensation. Despite a significant portion of the claim being genuine, fraudulent actions negated any potential payout. - read more
As climate change persists, the impact of severe weather on insurance premiums is becoming more evident, pushing affordability out of reach for many Australians. Bernadette Systa, a mother of five, faced an undeniable financial strain as her annual home and contents insurance costs surged from a modest amount to more than twice what she initially paid. This experience echoes a growing dilemma faced by households across the country. - read more
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