Cyber Insurance Online :: News
SHARE

Share this news item!

AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes

AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes

AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes?w=400
The Australian Financial Complaints Authority (AFCA) is calling on insurers to enhance their communication regarding premium increases to help resolve disputes more effectively and fairly.
The authority suggests that offering flexible payment options could also aid in managing disputes.

The annual review from AFCA highlights a 17% increase in general insurance complaints, totaling 34,231 cases up to June 30. A significant portion of these disputes centered around premium increase explanations, which AFCA believes can be better communicated.

Improved clarity on how external cost pressures impact premium changes is key, AFCA suggests, urging financial firms to provide detailed justifications to consumers about why their insurance costs have escalated.

David Locke, CEO of AFCA, points out that sustained high levels of complaints indicate that there is considerable room for improvement within the insurance sector, particularly in addressing straightforward issues like claims delays. He emphasizes that proactive communication is critical in preventing complaint escalation.

Among the complaints, add-on insurance products such as consumer credit insurance, guaranteed asset protection, and extended warranties accounted for 23% of the grievances. Issues within these categories often stem from unfair sales practices and poor disclosure, leading to systemic problems that AFCA has flagged to regulators.

Misleading information remains the chief concern, responsible for 22% of general insurance complaints. These include issues predominantly related to add-on products, followed closely by delays in processing claims.

Comprehensive motor insurance is particularly affected by these complaints, spurred by shortages in parts and labour, marking an ongoing challenge for the industry. AFCA insists that insurers could do more to meet customer expectations through diligent and transparent communication.

AFCA is urging insurers to tackle the causes of claim delays and ensure that their communication practices allow customers clear insight into why they must wait and how long the process might take. This call to action includes an emphasis on addressing prolonged home insurance claims, which sometimes result in unnecessary cash settlements instead of completed repairs.

The authority also emphasises the importance of recognising and responding appropriately to vulnerable customers, stressing the need for insurers to remain committed to early resolution and proactive engagement.

Published:Thursday, 23rd Oct 2025
Source: Paige Estritori

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Share this news item:

Insurance News

AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes
AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes
23 Oct 2025: Paige Estritori
The Australian Financial Complaints Authority (AFCA) is calling on insurers to enhance their communication regarding premium increases to help resolve disputes more effectively and fairly. The authority suggests that offering flexible payment options could also aid in managing disputes. - read more
TAL's $4.7 Billion Payout Reflects Rising Insurance Claims in Australia
TAL's $4.7 Billion Payout Reflects Rising Insurance Claims in Australia
23 Oct 2025: Paige Estritori
Leading Australian life insurer TAL has reported a substantial $4.7 billion in life insurance claims paid over the 12 months ending March 31, 2025. This figure underscores the significant role life insurers play in providing financial support to Australians during challenging times. - read more
Encompass Protection Recognized as Best Income Protection Provider in 2025
Encompass Protection Recognized as Best Income Protection Provider in 2025
23 Oct 2025: Paige Estritori
Encompass Protection has been honored with the Income Protection Insurance Award at the 2025 Money Magazine Life Insurance Awards. This accolade reflects the company's commitment to providing exceptional coverage and service to Australians seeking income protection solutions. - read more
Marinex Underwriting: A New Era in Australian Marine Insurance
Marinex Underwriting: A New Era in Australian Marine Insurance
23 Oct 2025: Paige Estritori
In a significant development for Australia's marine insurance sector, Rhodian Group has unveiled its latest venture, Marinex Underwriting. This new agency is set to provide specialised marine insurance products tailored to the unique needs of the Australian market. - read more
Network Marine Insurance Strengthens Ties with Marina Industries Association
Network Marine Insurance Strengthens Ties with Marina Industries Association
23 Oct 2025: Paige Estritori
Network Marine Insurance has recently elevated its commitment to Australia's marina industry by becoming a Bronze Sponsor of the Marina Industries Association (MIA). This partnership underscores the company's dedication to supporting the growth and sustainability of marinas across the nation. - read more


Cyber Insurance Articles

Cyber Security Essentials: Steps to Secure Your Online Business in Australia
Cyber Security Essentials: Steps to Secure Your Online Business in Australia
As the digital economy flourishes, Australian businesses are enjoying the fruits of their own cyber-infrastructure but are also becoming increasingly susceptible to cyber threats. The era of the internet has ushered in a wave of new opportunities, yet it also demands vigilance in the face of growing cyber risks. With cyberattacks becoming more sophisticated and frequent, the imperative for robust cyber security measures has never been more pronounced. - read more
From Phishing to Hacking: Examining the Coverage Options of Cyber Insurance Policies
From Phishing to Hacking: Examining the Coverage Options of Cyber Insurance Policies
In today's digital landscape, Australian small businesses face a myriad of cyber risks that can threaten their operations and financial stability. From sophisticated phishing scams to debilitating hacking attacks, the need to safeguard against such digital threats has never been more pressing. This introductory guide serves to illuminate the complexities of the cyber risk environment within Australia, focusing on the small business sector's unique vulnerabilities. - read more
The Essential Guide to Cyber Insurance for Australian Businesses
The Essential Guide to Cyber Insurance for Australian Businesses
Cyber insurance is a type of insurance designed to protect businesses from internet-based risks and, more generally, from risks relating to information technology infrastructure and activities. It covers losses related to data breaches, cyber extortion, and other kinds of cyber attacks. - read more
Cyber Security Checklists: Keeping Your Small Business Safe
Cyber Security Checklists: Keeping Your Small Business Safe
In today's digital age, cyber security has become a critical aspect for small businesses in Australia. As more operations move online, the potential for cyber threats increases. Small businesses are particularly vulnerable, making it essential to understand and address these risks proactively. - read more
Understanding the Importance of Cyber Insurance in the Digital Age
Understanding the Importance of Cyber Insurance in the Digital Age
As we dive deeper into the digital era, the topic of cyber security becomes increasingly critical. With businesses and individuals relying heavily on digital technologies, the threat of cyber attacks looms larger than ever. This introductory section aims to unpack the concept of cyber insurance as a tool to mitigate these risks. - read more


Your free Cyber insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Reinsurance:
Insurance that an insurance company purchases from another insurance company to mitigate risk.