Boat Insurance Online :: News
SHARE

Share this news item!

Transparency in Premiums: ACCC Highlights Importance of True Costs in Renewals

Transparency in Premiums: ACCC Highlights Importance of True Costs in Renewals

Transparency in Premiums: ACCC Highlights Importance of True Costs in Renewals?w=400
In a significant move for consumer clarity, the Australian Competition and Consumer Commission (ACCC) has recommended that insurance companies prioritize transparency when displaying previous premium costs in renewal notices.
According to the ACCC, the key disclosure figure should be the "actual" amount paid in the past year by policyholders.

The ACCC argues that from a consumer's viewpoint, the final price settled last year is the pivotal piece of information. "Discounts or changes may be made to an initial quote for a range of reasons, but consumers want to know what their final bill is or was," a spokesperson explained exclusively to insuranceNEWS.com.au.

Recent reporting by insuranceNEWS.com.au, drawing on insights from an ABC investigation, underscored discrepancies at RACQ Insurance, where renewal notices referenced premiums before any discounts. This practice showcased a nominal 1.5% rise based on the initial quoted premium, contrasting sharply with a 39% spike when focused on the actual amount previously paid.

These findings emerge from the ACCC's Northern Australia insurance inquiry, which revealed gaps in consumer awareness about the precise amounts paid on policies. The inquiry also suggested that insurers should clearly communicate the past sums insured and any applicable excesses to enhance customer understanding regarding policy details and pricing dynamics.

Despite these recommendations being highlighted both in an interim and final ACCC report from 2020, the Federal Government has yet to formally respond. Meanwhile, the Insurance Council of Australia notes that displaying the past year’s premium alongside the renewal quote is already a requirement under the current insurance practice code.

This presentation of prior premiums, however, might omit adjustments or substantial discounts negotiated during the policy term, as indicated by an industry representative.

Responding to the ABC's findings, RACQ asserts they have not received prior criticisms regarding their communication strategy. Policyholders typically engage directly if they require further clarification. "We will, however, be reviewing this feedback to identify any opportunities to further clarify our messaging for members,” a spokesperson remarked.

On the regulatory front, the Australian Securities and Investments Commission (ASIC) has pledged to scrutinize renewal disclosures and inspect prevailing industry practices potentially impacting consumer transparency.

Consumer Action Law Centre CEO Stephanie Tonkin emphasized the risks of misleading pricing to the public. Stating they haven't heard of this practice directly from the people who call the helplines, but any misleading representation of actual savings and prices – similar to the kind of strategies supermarkets are being criticised for – is concerning, especially in the midst of a cost-of-living crisis.

Published:Wednesday, 6th Nov 2024
Source: Paige Estritori

Share this news item:

Insurance News

Insurers Face Intense Scrutiny Over Quake Claim Rejections Insurers Face Intense Scrutiny Over Quake Claim Rejections
21 Nov 2024: Paige Estritori

In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress. Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied. - read more
AI Regulations: A Web of Complications AI Regulations: A Web of Complications
20 Nov 2024: Paige Estritori

The Insurance Council of Australia (ICA) has raised concerns about the potential fallout from a fragmented regulatory approach to artificial intelligence and automated decision-making in the industry. There is fear that this patchwork of reforms could result in conflicting requirements, heavier compliance burdens, and increased industry confusion. - read more
APRA Survey Reveals Impact of Climate Change on Insurance Industry Practices APRA Survey Reveals Impact of Climate Change on Insurance Industry Practices
19 Nov 2024: Paige Estritori

A recent analysis by the Australian Prudential Regulation Authority (APRA) reveals that over 90% of general insurers and reinsurers anticipate climate change will influence their underwriting procedures, posing new challenges to the industry. - read more
Fraudulent Claims Lead to Complete Denial of Compensation Fraudulent Claims Lead to Complete Denial of Compensation
18 Nov 2024: Paige Estritori

In a remarkable case highlighting the severe consequences of insurance fraud, an individual's attempt to inflate a theft insurance claim has resulted in the total denial of compensation. Despite a significant portion of the claim being genuine, fraudulent actions negated any potential payout. - read more
Soaring Insurance Premiums Amid Changing Climate Soaring Insurance Premiums Amid Changing Climate
14 Nov 2024: Paige Estritori

As climate change persists, the impact of severe weather on insurance premiums is becoming more evident, pushing affordability out of reach for many Australians. Bernadette Systa, a mother of five, faced an undeniable financial strain as her annual home and contents insurance costs surged from a modest amount to more than twice what she initially paid. This experience echoes a growing dilemma faced by households across the country. - read more


Boat Insurance Articles

Top Tips for Reducing Your Boating Costs in Australia Top Tips for Reducing Your Boating Costs in Australia
Australia's seascape offers an idyllic backdrop for boating enthusiasts, yet it also presents unique challenges. Boating in Australia is not just a pastime; it's a lifestyle embraced by many who are drawn to the water's edge. The costs associated with this lifestyle, however, can mount quickly. From maintenance to mooring fees, the financial aspect of boating is an unavoidable reality. In this article, we will delve into ways you can trim these costs without sacrificing your experience at sea. - read more
Setting Sail with Confidence: Tips for Comparing Boat Insurance Policies in Australia Setting Sail with Confidence: Tips for Comparing Boat Insurance Policies in Australia
Welcome aboard, Aussie skippers! When it comes to navigating the waves, whether you're doing it for leisure or livelihood, securing the right boat insurance is as crucial as knowing your starboard from your port. With varied waters and changing conditions, Australian boat owners face unique challenges that make comprehensive insurance coverage not just a choice, but a necessity. - read more
Discover the Safe Harbor: Expert Advice for Choosing the Right Boat Insurance Policy Discover the Safe Harbor: Expert Advice for Choosing the Right Boat Insurance Policy
Navigating through the tranquil blue waters of Australia can be the highlight of any skipper's day, but the true peace of mind comes from knowing your vessel is protected. Boat insurance isn't just another tick on your checklist; it's an essential safeguard for your maritime lifestyle. In this article, we delve into why choosing the right boat insurance policy is not a luxury, but a necessity for boaters across Australia. - read more
Common Boating Blunders: Expert Advice on How to Steer Clear Common Boating Blunders: Expert Advice on How to Steer Clear
Boating is a pastime enjoyed by millions around the globe, offering a unique blend of adventure, relaxation, and connection with nature. However, navigating the waters comes with its share of risks. Understanding the importance of safety on the waters cannot be overstated – it's not just about adhering to rules; it’s a pivotal aspect of responsible boat ownership and operation. - read more
The Importance of a Specialist Insurance Broker for Your Boat Insurance Needs The Importance of a Specialist Insurance Broker for Your Boat Insurance Needs
When it comes to insuring your beloved boat, an insurance broker can be a valuable asset in finding the right coverage for your unique needs. Specifically, a specialist boat insurance broker can offer expert knowledge and tailored policies that traditional insurance agents may not be able to provide. - read more
Setting Sail with Confidence: Tips for Comparing Boat Insurance Policies in Australia Setting Sail with Confidence: Tips for Comparing Boat Insurance Policies in Australia
Welcome aboard, Aussie skippers! When it comes to navigating the waves, whether you're doing it for leisure or livelihood, securing the right boat insurance is as crucial as knowing your starboard from your port. With varied waters and changing conditions, Australian boat owners face unique challenges that make comprehensive insurance coverage not just a choice, but a necessity. - read more
The cost of insurance for recreational boats in Australia: What to expect The cost of insurance for recreational boats in Australia: What to expect
As a recreational boat owner in Australia, you are responsible for ensuring the safety of your vessel and passengers. This is where boat insurance comes in to play. Boat insurance is a type of insurance policy that can provide financial protection against damage to your boat, theft, and injury to passengers. - read more
Essential Tips for Securing Your Boat Against Severe Aussie Weather Essential Tips for Securing Your Boat Against Severe Aussie Weather
Australia's climate is a tapestry of extremes, with its beautiful coastlines often bearing the brunt of severe and capricious weather conditions. From unforgiving sun to sudden squalls, Aussie boat owners know all too well the challenges that Mother Nature can present. - read more
How to Choose the Best Insurance Policy for Your Boat How to Choose the Best Insurance Policy for Your Boat
Boat insurance policies are an essential requirement for boat owners in Australia. Understanding the different types of policies available, the level of cover provided by each policy, and the factors that can impact premiums, are all important steps when choosing the best insurance policy for your boat. - read more
Understanding the Fine Print: A Beginner's Guide to Boat Insurance in Australia Understanding the Fine Print: A Beginner's Guide to Boat Insurance in Australia
Welcome to the nautical world of boat insurance – a crucial safeguard for any Australian skippering their own vessel. Whether you're a seasoned sailor or just beginning to dip your toes in the water, understanding the intricacies of boat insurance is essential in ensuring your maritime escapades are smooth sailing. - read more


Your free Boat 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
Waiting Period:
The time period that must pass after filing a claim before the insurance coverage becomes effective or benefits are paid.