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.
