The Insurance Council of Australia (ICA) has recently established an Effective Disclosure Taskforce (EDT) to scrutinise product disclosure in the general insurance industry.
According to ICA CEO Rob Whelan “the insurance industry, governments and consumer groups all perceive the current disclosure regime as being lengthy, often complex and not always helpful in ensuring consumers understand the product they are buying…the taskforce will advise the ICA Board on initiatives to increase the effectiveness of insurance disclosure documents.”
As part of its mandate, the EDT will consider recommendations contained in the Financial System Inquiry’s Final Report handed down in December 2014. Those recommendations included that the general insurance industry should:
- Guide consumers as to the likely replacement value for home building and contents for the purpose of insurance.
- Enhance existing tools and calculators for home insurance, including providing up-to-date information about building costs.
- Improve disclosure in insurance product disclosure documents, including consumer testing, and provide information at the appropriate point in the sales process.
It is expected that the EDT will present its findings and recommendations to the ICA Board in November 2015. The EDT findings should be of great interest, particularly to those insurers, it would seem, offering home building and contents policies to consumers.
A copy of the ICA’s media release regarding the EDT can be found here: