Six insurers have withdrawn poor value-for-money insurance policies exposed in the Financial Markets Authority’s “conduct” review of general insurers.
The FMA’s review also resulted in insurers confessing to overcharging some customers, sometimes wrongly charging late premium payment fees, and not giving promised “multi-product” discounts to people who bought house, contents and car insurance from them.
Clare Bolingford, the FMA’s director for banking and insurance, said: “I suspect many of these issues would not have been identified without the FMA requiring insurers to review their products and policies.”
The general insurer conduct review followed reviews of banks, and life insurers, which the FMA did after the Australian Royal Commission into misconduct by banks and insurers revealed the Australian parent companies of New Zealand banks and insurers had treated many customers shoddily.
This FMA review highlights the issues with dealing directly with insurance companies. As Bolingford points out, its very hard for customers to understand how their house, car and contents premiums were calculated. For insurance experts Gareth, Lee and Megan its not an issue for us!
At Balance we make sure our clients get the correct discounts applicable for their situation. More importantly we also make sure that our clients get expert advice at claim time. Recently Megan had a new client who had a recent claim via a direct insurer, which on the face of it looked like a good settlement. However when Megan looked at the way the insurers had settled the claim it was clearly incorrect, not backed up by the wording and left the client with a reduced value settlement. Had we been involved we would have reminded the insurers of their contractual commitment and this issue would not have occurred.
The lesson. Quite simple.. let us deal with the insurers for you. Let us make sure you get the correct discounts, let us help you navigate the mindfield that is insurance, especially at claim time.
If you haven’t already done so.. call us now to discuss your insurance requirements.