Nightclub Insurance Online :: News

Share this news item!

AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes

The Australian Financial Complaints Authority (AFCA) is calling on insurers to enhance their communication regarding premium increases to help resolve disputes more effectively and fairly.

The authority suggests that offering flexible payment options could also aid in managing disputes.

The annual review from AFCA highlights a 17% increase in general insurance complaints, totaling 34,231 cases up to June 30. A significant portion of these disputes centered around premium increase explanations, which AFCA believes can be better communicated.

Improved clarity on how external cost pressures impact premium changes is key, AFCA suggests, urging financial firms to provide detailed justifications to consumers about why their insurance costs have escalated.

David Locke, CEO of AFCA, points out that sustained high levels of complaints indicate that there is considerable room for improvement within the insurance sector, particularly in addressing straightforward issues like claims delays. He emphasizes that proactive communication is critical in preventing complaint escalation.

Among the complaints, add-on insurance products such as consumer credit insurance, guaranteed asset protection, and extended warranties accounted for 23% of the grievances. Issues within these categories often stem from unfair sales practices and poor disclosure, leading to systemic problems that AFCA has flagged to regulators.

Misleading information remains the chief concern, responsible for 22% of general insurance complaints. These include issues predominantly related to add-on products, followed closely by delays in processing claims.

Comprehensive motor insurance is particularly affected by these complaints, spurred by shortages in parts and labour, marking an ongoing challenge for the industry. AFCA insists that insurers could do more to meet customer expectations through diligent and transparent communication.

AFCA is urging insurers to tackle the causes of claim delays and ensure that their communication practices allow customers clear insight into why they must wait and how long the process might take. This call to action includes an emphasis on addressing prolonged home insurance claims, which sometimes result in unnecessary cash settlements instead of completed repairs.

The authority also emphasises the importance of recognising and responding appropriately to vulnerable customers, stressing the need for insurers to remain committed to early resolution and proactive engagement.

Published:Thursday, 23rd Oct 2025
Source: Paige Estritori

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Share this news item:

Insurance News

Netstrata's Insurance Practices Raise Industry Concerns

26 Oct 2025: Paige Estritori

Recent revelations have cast a spotlight on Netstrata, a prominent strata management firm in Australia, for imposing insurance brokerage fees significantly higher than industry norms. This development has ignited a broader discussion about the need for transparency and reform within the strata management sector. - read more

PICA Group Highlights Potential Risks to Strata Industry Viability

26 Oct 2025: Paige Estritori

Bobby Lehane, CEO of PICA Group, has issued a cautionary statement regarding the future of the strata management sector in Australia. He emphasized that eliminating insurance commissions could pose a significant threat to the industry's viability, drawing parallels to the challenges faced by the aged care sector. - read more

Queensland Strata Owners Advised to Leverage Initiatives for Premium Reduction

26 Oct 2025: Paige Estritori

Strata property owners in North and Central Queensland are being encouraged to take advantage of new federal and state initiatives designed to reduce insurance premiums and improve cyclone resilience. These programs offer financial incentives for property upgrades that can lead to significant savings on insurance costs. - read more

AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes

23 Oct 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) is calling on insurers to enhance their communication regarding premium increases to help resolve disputes more effectively and fairly. The authority suggests that offering flexible payment options could also aid in managing disputes. - read more

TAL's $4.7 Billion Payout Reflects Rising Insurance Claims in Australia

23 Oct 2025: Paige Estritori

Leading Australian life insurer TAL has reported a substantial $4.7 billion in life insurance claims paid over the 12 months ending March 31, 2025. This figure underscores the significant role life insurers play in providing financial support to Australians during challenging times. - read more

Click for more Insurance News

Nightclub Insurance Articles

A Comprehensive Guide to Choosing the Right Nightclub Insurance

Running a nightclub is no small feat. It's a lively business that offers entertainment and enjoyment. Yet, it also comes with its own set of risks. That's where nightclub insurance comes in. Just as you craft the perfect atmosphere for your patrons, having the right insurance ensures that the unexpected doesn't catch you off guard. - read more

Understanding Public Liability Insurance for Nightclub Venues

Picture this: it's a busy Saturday night at your nightclub. The dance floor is packed, the DJ is spinning tunes, and everyone's having a great time. Suddenly, someone trips and falls, injuring themselves. In such situations, having the right insurance can be crucial. That's where public liability insurance comes into play. - read more

Why Nightclubs Need Cyber Insurance in Today’s Digital Age

The nightlife industry is undergoing a significant digital transformation, reshaping how nightclubs operate and engage with their patrons. From online bookings to digital payments, many nightclubs are embracing technology to enhance customer experience and streamline operations. However, this digital shift comes with its own set of challenges. - read more

How to Save Costs on Nightclub Insurance Without Sacrificing Coverage

Running a nightclub in Australia can be an exciting venture, but like any business, it comes with its fair share of risks. Nightclub insurance is a crucial safeguard that shields you from the unforeseen, be it a simple accident or a significant mishap. This specialized insurance is pivotal for protecting your establishment, patrons, and the bottom line. - read more

Unforeseen Events: How Business Interruption Insurance Can Save Your Nightclub

Business interruption insurance is a crucial safeguard for nightclub owners who want to protect their revenue streams from unexpected disruptions. This type of insurance is designed to cover the loss of income that businesses suffer after a disaster-related closing of the business premises or due to the rebuilding process afterward. - read more

Knowledgebase

Term Life Insurance:
A life insurance that provides a cover for a specific period of time - usually one to five years or until the insured reaches age 65 or 70.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.