Most people don’t read their Product Disclosure Statement, and even when they do, it’s hard to understand. I know this firsthand — I took out the maximum sum insured on my contents policy thinking I was fully covered. Then we had a flood, and I found out my wife’s Persian rug, one of our most valuable items, was only covered for $1,000 because of a sub limit buried on page 56 of the PDS. That’s when I realised: you can be overinsured and underinsured at the same time.

Education

So how do we fix this? So how do we stop this happening to other people? It all starts with education.

Consumers need more than just a document — they need clear, practical information about what they’re covered for.

Sums insured and sub limits should be explained in a way that makes sense to the average person. It’s not just about throwing around numbers; it’s about showing people what those numbers actually mean when something goes wrong.

Better advice

Then there’s the role of personalised advice. Whether it’s a broker or a customer service team, that human interaction is key. If someone had sat down with me and asked, “Do you own any high-value rugs, jewellery, or electronics?”, I would’ve thought about it differently.

Premium

You need to login to access this

Login

What are CIP Points? About ANZIIF Membership