Actuaries Institute seeks fairer insurance

The paper found that existing customers are charged more than new clients.

Australian insurance company boards are being called on to prioritise customer fairness, as complaints about health, life, home, and motor insurance continue to rise. 

A recent paper from the Actuaries Institute, authored by Ian Laughlin, highlighted the need for boards to improve oversight on fairness by regularly reviewing policies on products, pricing, and claims to ensure they align with customer expectations.

The paper addresses issues such as significant premium increases, low cash settlements post-2022 floods, and situations where existing customers are charged more than new clients. 

Laughlin emphasised the need for mutual trust, noting that fairness is central to the insurance system, which is based on the promise of support during difficult times.

To help board members assess fairness, the paper suggests a set of guiding questions, including the relevance of products to low-income groups, the frequency of complaint reviews, and management's approach to maintaining fair customer relations.