INSURANCE POLICIES – AUSTRALIA

Insurers admit avoiding cover for risky areas

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Original article by Alice Uribe
The Australian Financial Review – Page: 23 : 23-Jan-18

The Australian Competition & Consumer Commission is investigating the level of competition within the general insurance sector in northern Australia, along with premium increases in that part of the country. The ACCC is due to make its final report to the Treasurer by late 2020. Insurance companies have conceded that they avoid covering some properties in the region, which is prone to cyclones, but have denied suggestions that they have engaged in "premium price-gouging".

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF FINANCE, QBE INSURANCE GROUP LIMITED – ASX QBE, INSURANCE COUNCIL OF AUSTRALIA LIMITED, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN

Low income earners hit hardest by fees

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Original article by Michael Roddan
The Australian – Page: 22 : 20-Sep-17

KPMG has released a report which shows that the average superannuation fund balance on retirement is 6.2 per cent lower for members who have a default life insurance policy. However, life insurance fees means the average super balance on retirement is 14 per cent lower in the case of women whose annual income is less than $A37,000. Default insurance accounted for about 50 per cent of the $A14bn worth of insurance benefits that were paid out in the three years to June 2016. The Insurance in Superannuation Working Group will release its draft code of practice on 20 September.

CORPORATES
KPMG AUSTRALIA PTY LTD, INSURANCE IN SUPERANNUATION WORKING GROUP, RICE WARNER ACTUARIES PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION

Most general insurance policy holders renew without approaching other companies

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 11-Sep-17

A Roy Morgan Single Source survey has found that 77.9% of Australians aged 14+ with general insurance do not approach any other company when renewing their policy. An additional 14.6% approach another company but do not change. Roy Morgan’s "General Insurance Industry Currency Report" also shows that the proportion of general insurance policy holders renewing with the same company after approaching others has increased from 11.4% in the year to July 2013 to 14.6% in the year to July 2017. The most loyal customers, based on the proportion of policy holders that renew without approaching another company, are with RACQ (85.2%), the RACV (84.1%) and RAC (83.8%). The least loyal are Budget Direct (63.3%) and GIO (67.2%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, RACQ INSURANCE LIMITED, RACV INSURANCE, RAC INSURANCE PTY LTD, BUDGET DIRECT INSURANCE AGENCY PTY LTD, GIO AUSTRALIA LIMITED

Health premium cuts leave age bomb

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Original article by Sean Parnell
The Australian – Page: 3 : 15-Aug-17

A growing number of Australian health insurance policies have exclusions in them, as policy holders try to reduce premium costs. Most exclusions relate to pregnancy-related services and procedures seen as relating to old age, such as hip replacements and eye surgery. Many such exclusions are agreed to when the policy holder is young, but then forgotten about until later in life. The trend towards increased policy exclusions comes as governments try to reduce the exodus of consumers from the health insurance sector.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, NIB HOLDINGS LIMITED – ASX NHF, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. PRIVATE HEALTH INSURANCE OMBUDSMAN, CONSUMERS’ HEALTH FORUM OF AUSTRALIA, AUSTRALIA. DEPT OF HEALTH. PRIVATE HEALTH MINISTERIAL ADVISORY COMMITTEE

Retailers hit with 10pc hike in insurance cover

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 28-Jan-16

Figures from commercial insurance comparison website BizCover show that small-to-medium businesses continue to benefit from strong competition in Australia’s insurance market. The retail sector is an exception. An insurance policy for a retail business may cost around $A1,700. A non-retail company would pay $A1,000 for a comparable cover. BizCover’s Small Business Insurance Index rose by five points in the fourth quarter of 2015.

CORPORATES
BIZCOVER PTY LTD, ALLIANZ AUSTRALIA LIMITED, AIG AUSTRALIA, QBE INSURANCE GROUP LIMITED – ASX QBE

Responsible insurance-sale call repeated

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Original article by Shaun Drummond
The Australian Financial Review – Page: 19 : 2-Mar-15

Financial system inquiry member Craig Dunn says Australia should not follow the European Union by introducing an individual appropriateness test for the insurance industry. He argues that such a test would result in significant costs for the industry. He says the inquiry instead favours an increased obligation on the part of product issuers and distributors to act responsibly when selling insurance products

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL SERVICES COUNCIL, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, INSURANCE COUNCIL OF AUSTRALIA LIMITED

Embrace telematics or lose share, insurers told

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Original article by Ruth Liew
The Australian Financial Review – Page: 21 : 10-Feb-15

Brian Wallace of IT group CSC believes that the introduction of telematics technology in Australia’s insurance industry is inevitable. He says car insurers in particular will need to implement telematics in order to protect their market share. Insurance Australia Group has ruled out offering such products, but QBE Insurance Group says its telematics product has resulted in cost savings of up to 30 per cent for some customers when renewing their policies

CORPORATES
COMPUTER SCIENCES CORPORATION, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, ACCENTURE, CELENT COMMUNICATIONS LLC, NRMA LIFE LIMITED, CGU INSURANCE AUSTRALIA LIMITED

Insurance warning on Airbnb rental

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Original article by Mitchell Bingemann
The Australian – Page: 5 : 11-Nov-14

Online sharing services such as Airbnb for holiday homes and Uber for cars are becoming increasingly popular with Australian consumers. However, those considering agreements under which they provide their properties or vehicles have been warned by the Insurance Council of Australia to check with the provider of their policy. CEO Rob Whelan notes that their cover may not extend to public liability

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED, AIRBNB AUSTRALIA PTY LTD, AIRBNB INCORPORATED, UBER TECHNOLOGIES INCORPORATED, VICTORIA. TAXI SERVICES COMMISSION