Here's how insurance companies can address consumers' biggest concerns
Insurance often finds itself at the centre of frustration when it comes to finances. In fact, a recent report by the Australian Financial Complaints Authority (AFCA) shows that comprehensive car insurance and home insurance are high on the list of consumer grievances, only surpassed by credit cards and personal transaction accounts.
So, we decided to delve into the common concerns consumers have, as reported by the AFCA , and share some ideas to address them. After all, insurance should bring peace of mind, and we want to help make sure it does just that.
Insurance gripe #1: claim processing delays
Filing a claim and then enduring an agonising wait for a response is enough to test anyone's patience. That’s why it’s crucial for insurers to streamline the process and bring resolution closer.
Solution: tech to the rescue
Technology has the potential to offer quicker and more user-friendly claim experiences. Take NIB, an Australian health insurer, which leverages machine learning to automate document processing (like invoices and receipts). This initiative has the potential to speed up claims, boost accuracy and keep customers informed through real-time updates.
Insurance gripe #2: service quality
Ever feel like just a number? Unfortunately, many policyholders have had it with poorly managed policies, claims processes that don't meet expectations and service reps that don’t seem to empathise enough.
Solution: training makes a difference
There's good news! Organisations like the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) try to bridge this gap by offering comprehensive training programs for customer service teams. These programs equip professionals with the skills they need to communicate effectively, empathise with customer concerns and ultimately deliver a more positive experience.
Insurance gripe #3: claim amount disputes
It's understandable to feel let down when your claim settlement doesn't match your expectations. This can be caused by two key factors: unclear policy wording and concerns about fair claim evaluation.
Solution: simplifying insurance speak
Fortunately, some insurance companies have heeded the call. One example is Bupa's ‘Customer Friendly Language’ program, which simplifies complex health insurance terminology. This initiative aims to demystify coverage details, reducing confusion and potential disputes over claims.
Insurance gripe #4: claim denials
Facing a claim denial can be incredibly frustrating, especially when the reasons seem unclear or unfair. This often stems from confusion surrounding policy exclusions or how claim criteria are applied.
Solution: open communication and appeals
Fortunately, insurance companies are recognising the importance of clear communication. Lemonade, a US-based insurance company, sets a positive example by providing detailed explanations for claim denials alongside a straightforward appeals process. By prioritising open communication and accessible appeals processes, insurers can build trust and foster a more positive claims experience.
Bottom line
Dealing with insurance hassles is certainly frustrating, but there's light at the end of the tunnel. Companies are now cutting down wait times, making terms easier to understand and explaining claim denials more clearly. We're not quite there yet, but these changes are making insurance a bit closer to what it's meant to be: a real peace of mind.
If you’re not happy with the way your insurer handles complaints maybe it’s time to switch providers? We compare some of the best insurers here at Mozo.
Compare home insurance policies now:
Home Cover - Buildings & Contents
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - Yes
- Underinsurance protection
- Optional ExtraUp To 30% Of Buildings Sum Insured, Applied Automatically For Eligible Policies
- New for old
replacement - Yes
- General contents
- Yes
- Cash
- Up to $800
- Cd dvd and electronic files
- Up to $1,000 for electronic files and software
- Computer software hardware
- Yes - hardware. Up to $1,000 for software.
- Camera and accessories
- Yes
- Carpets
- Yes
- Antiques and valuables
- Up to $20,000 per item, set or pair of artworks or antiques. Up to $5,000 per collection.
- Jewellery
- Up to $2,500 per item, set or pair
- Replacement of documents
- Up to $800
- Tools of trade
- Up to $5,000
- Contents while moving
- Yes
- Lock replacement
- Up to $2,500
- Temporary accommodation
- Up to 24 months, up to 20% of buildings sum insured combined with temporary accommodation for pets
- Debris removal
- Yes, combined with building costs
- Demolition cost
- Yes, combined with building costs
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- Yes
- Buildings and structural improvements
- Yes
- Building materials
- Up to $2,000
- Landscaping
- No
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read reviews and learn more about QBE home insurance
Home & Contents Insurance
- Main events covered
- Fire
- Theft
- Storm
- FloodOptional Extra
- Monthly payments
cost extra - Yes
- Underinsurance protection
- Optional ExtraUp To 25% Of Building Sum Insured
- New for old
replacement - Yes
- General contents
- Yes
- Cash
- Up to $800 in total
- Cd dvd and electronic files
- Up to $3,000 combined with computer software
- Computer software hardware
- Hardware yes, software up to $3,000 combined with CDs/DVDs
- Camera and accessories
- Yes
- Carpets
- Yes
- Antiques and valuables
- Up to $5,000 per item for artwork, up to $12,000 in total, up to $2,000 for collections
- Jewellery
- Up to $1,000 per item or set, up to $5,000 in total
- Replacement of documents
- No
- Tools of trade
- Up to $2,000
- Contents while moving
- Up to 20% of sum insured
- Lock replacement
- Up to $1,000
- Temporary accommodation
- Up to 10% of sum insured, up to 12 months. Combined with temporary accommodation for pets.
- Debris removal
- Up to 10% of sum insured combined with demolition cost and emergency storage
- Demolition cost
- Up to 10% of sum insured combined with debris removal cost and emergency storage
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- No
- Buildings and structural improvements
- Yes
- Building materials
- Up to $1,000
- Landscaping
- Yes, garden borders, pathways and paved areas.
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read reviews and learn more about Budget Direct home insurance
Home & Contents Insurance
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - Yes
- Underinsurance protection
- No
- New for old
replacement - Yes
- General contents
- Yes
- Cash
- No
- Cd dvd and electronic files
- Yes, excludes electronic files
- Computer software hardware
- Yes
- Camera and accessories
- Yes
- Carpets
- Yes
- Antiques and valuables
- Yes
- Jewellery
- Optional Extra, select specific replacement value for each item of jewellery where the individual value is more than $15,000
- Replacement of documents
- No
- Tools of trade
- Optional Extra, up to $1,000 per item , up to $5,000 in total
- Contents while moving
- Up to 20% of sum insured
- Lock replacement
- Up to $1,000
- Temporary accommodation
- Up to 12 months, up to 12% of sum insured
- Debris removal
- Up to 20% of sum insured combined with demolition and professional fee costs.
- Demolition cost
- Up to 20% of sum insured combined with debris removal and professional fee costs
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- No
- Buildings and structural improvements
- Yes
- Building materials
- Up to $1,000
- Landscaping
- No
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read reviews and learn more about Youi home insurance
Home & Contents Insurance
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - No
- Underinsurance protection
- No
- New for old
replacement - Yes
- General contents
- Yes
- Cash
- Up to $300
- Cd dvd and electronic files
- Up to $5,000
- Computer software hardware
- Hardware yes, software up to $5,000 combined with CDs/DVDs
- Camera and accessories
- Up to $2,000
- Carpets
- Yes - limits apply for carpets over 10 years old
- Antiques and valuables
- Up to $2,000 per item, up to $12,000 in total
- Jewellery
- Up to $2,000 per item, up to $6,000 in total
- Replacement of documents
- Up to $1,000
- Tools of trade
- Up to $2,000
- Contents while moving
- Yes
- Lock replacement
- Up to $1,000
- Temporary accommodation
- Up to 12 months, up to 10% of sum insured
- Debris removal
- Up to 20% of sum insured combined with demolition cost
- Demolition cost
- Up to 20% of sum insured combined with debris removal cost
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- Yes
- Buildings and structural improvements
- Yes
- Building materials
- No
- Landscaping
- Up to $1,000 for plants
- Gates and fences
- Yes - Up to 50% of the total cost, up to 2km
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read reviews and learn more about honey home insurance
Home & Contents Insurance
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - Yes
- Underinsurance protection
- Optional ExtraUp To 30% Of Building Sum Insured
- New for old
replacement - Yes
- General contents
- Yes
- Cash
- Up to $800
- Cd dvd and electronic files
- Up to $1,000
- Computer software hardware
- Up to $1,000
- Camera and accessories
- No
- Carpets
- Yes
- Antiques and valuables
- Up to $20,000 per item, set or pair
- Jewellery
- Up to $2,500 per item, set or pair
- Replacement of documents
- Up to $800
- Tools of trade
- Up to $5,000
- Contents while moving
- Yes
- Lock replacement
- Up to $2,500
- Temporary accommodation
- Up to 24 months, up to 20% of sum insured combined with temporary accommodation for pets
- Debris removal
- Yes
- Demolition cost
- Yes
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- Yes
- Buildings and structural improvements
- Yes
- Building materials
- Up to $2,000
- Landscaping
- Yes - pathways
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read reviews and learn more about Australia Post home insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
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