Allianz makes life insurance easy
Allianz Australia has introduced a simplified life insurance product disclosure statement (PDS) of just seven pages in response to evidence many consumers do not completely understand what their policies cover.
Allianz managing director Terry Towell said recent Newspoll research findings that only 57 per cent of home contents and building insurance policyholders fully understand what they are covered for also prompted the company to review its home and motor policies.
In light of the Newspoll research findings, Towell urged consumers to double-check their policies, warning many are likely to be either “dangerously underinsured” or paying for cover they do not really need.
“In my experience, at least one-third of people whose claims are denied didn’t realise the particular circumstances of their loss were not covered by their insurance policy.”
In his view, insurers have a responsibility to make their policies better understood by consumers.
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
