Reformations in insurance industry
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Transcript of Reformations in insurance industry
- Reformations in Insurance Industry The Insurance industry is working to lessen the sudden inconveniences and misfortunes of human life. In the Author- Jack Smith
- current era, at one side insurance is working as a supporter to individual and on the other side people are getting bluffed too. Every insurance-policy is to support individuals in the hard times. But, in some cases the insurance market has taken the advantage of the compulsive situation of the customers and their innocence (for example, customers buying policies for security). Peter Kell, Deputy Chairman of the ASIC, announced that deep evaluation is going on by ASIC, on the industry working data of the last year. As the working area of Insurance industry is in Australian markets, is as well as in abroad. So, keen study of existing policies is going on to ensure identification, also in the context of the future. Particularly the most discussed areas are home, add-on and consumer credit insurance etc. The above mentioned policies are reviewed on a priority basis, which is to be handled within ASIC's Financial System Inquiry.
- Talking about the home cover section, the current challenges associated with it, is in review. In the case of bushfires the customers are totally disappointed, as they are unable to rebuild their homes. ASIC has stressed upon the corrections due to non- transparency and miscommunication regarding the information and details of the product. Due to lack of information and partial understanding of customers, the fraud issues take place. This is a common problem in all cases like general, health and property cover etc. Add-on insurance has also supported the complaint list. Hence a special emphasis on add on insurances were made. The false advertising and inappropriate conduct is a phrase which clears the story of sale and complaint of add-on insurance. ASIC has announced to increase vigilance in regard to add on cover. Add-on policies are not a negative sale, but the style of selling is annoying. One should make add-on sales, but the deal should be advantageous to the concerned customer, also the terms and conditions and the
- add-on benefits should be informed. Inquiries are conducted by ASIC for add-on insurance sold through car yards and overseas-insurance. It is expected that such attempts will filter the hazardous processes associated with add-on insurance. In future, complaint and faulty in case of complaint, will be followed by appropriate actions. The report, published by ASIC last year was shocking in relation to consumer credit insurance. The inquiry report stating that many consumers were unaware of the product purchased (consumer credit insurance). Or customers were pressured and harassed by sales staff to do so; it was a shameful act to be gulped down. Further a report in relation to consumer credit insurance, sales practices in the first half of this year is expected to be released. May such products are also listed in the recommendation list by ASIC. This attempt by ASIC, is to create a pollution free insurance zone. The filtration will support the life of customers and will help customers in regaining trust for insurance bodies.