The General Insurance Code Governance Committee (CGC) has called on insurers to improve transparency and communication with customers after a review of online applications for motor vehicle insurance.
The review looked at how 13 insurers handle online applications across 58 motor insurance brands.
It found that insurers could be doing more to clearly explain to customers why they ask for certain personal details. The report noted that some insurers could not demonstrate how some questions in the applications were relevant to their decisions.
The review also found that when insurers decline to offer insurance, customers are often left with vague or confusing messages that do not clearly outline the reasons or what they can do next.
Chair of the CGC, Veronique Ingram, emphasised the importance of communication from insurers.
“Customers have a right to clear, honest and respectful communication, which is also good for business,” Ms Ingram said.
“When customers understand why insurers are asking for information, how insurers will use it, and the reasons behind a decision, it leads to a smoother more efficient experience.”
The report notes that some insurers are doing well and shares examples of good practice. But it encourages insurers to review their online forms and refusal messages to ensure customers are not left uncertain or discouraged.
“A simple explanation can make a big difference,” Ms Ingram said.
“Clear communication meets expectations and helps customers feel that they’ve been treated fairly in the process.”
The CGC welcomes the steps that some insurers have taken to address its concerns, with improvements to messages when they decline cover. It will continue to work with insurers to build on these improvements, strengthen transparency and enhance customer experiences.
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The General Insurance Code Governance Committee is an independent body that monitors and enforces insurers’ compliance with the Code of Practice.
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