Public Liability Insurance: A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.
Starting a business is a thrilling venture, but it comes with its share of risks and uncertainties. One often underestimated aspect by many entrepreneurs is the need for adequate insurance, particularly, professional indemnity insurance. This type of insurance is crucial for protecting your start-up against potential financial liabilities resulting from errors, omissions, or professional negligence. - read more
Embarking on the entrepreneurial journey of running a small business comes with not only the thrill of potential success but also the specter of various risks. One of the most effective shields against the unforeseeable is small business insurance—a critical tool that safeguards your enterprise's financial health. In this section, we'll demystify the role insurance plays in protecting your small business and provide a brisk walkthrough of the different types of insurance options available. - read more
Professional indemnity insurance is an essential safeguard for practitioners and businesses that provide expert advice or services. This type of insurance helps to protect professionals against legal costs and claims for damages from an act, omission, or breach of professional duty in the course of their work. For Australian professionals, where litigation is increasingly common, it's a pivotal component of risk management. - read more
The landscape of work is changing in Australia, with more individuals embracing the flexibility and autonomy that freelancing offers. A significant surge in the freelance economy is a testament to this shift, as a myriad of professionals, from writers and designers to IT consultants, choose to offer their services independently. The burgeoning freelance community contributes not only to innovation but also to the country's economic vibrancy. - 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
The landscape of work is changing in Australia, with more individuals embracing the flexibility and autonomy that freelancing offers. A significant surge in the freelance economy is a testament to this shift, as a myriad of professionals, from writers and designers to IT consultants, choose to offer their services independently. The burgeoning freelance community contributes not only to innovation but also to the country's economic vibrancy. - 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
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) remains one of the keystones of risk management for professionals across Australia. Yet, misconceptions and lack of awareness can lead to inadequate coverage, leaving individuals and businesses vulnerable in a litigious environment. - read more
Indemnity insurance may sound like complex legalese, but at its core, it's a straightforward and crucial protection for businesses of all types and sizes. Simply put, it's a form of insurance that shields a business from bearing the full brunt of financial losses due to lawsuits or claims made against it. - 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
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