Vol 48 Issue 1

In short

• Insurers have an ethical and regulatory obligation to assist customers facing financial hardship and vulnerability.
• Support can include offering premium waivers and access to high-care teams in the case of vulnerable customers.
• Adhering to strict compliance rules must be part of insurers’ response.

Soaring living costs, stubbornly high inflation and rising threats such as family violence are a triple-whammy taking a toll on communities and forcing insurers to consider how they can respond to help customers in vulnerable situations.

According to recent Real Insurance research, about seven in 10 Australian households are dealing with financial stress.

While specific insurance-industry figures are difficult to obtain, Allianz reports rising levels of customer financial stress in Australia.

“Our frontline teams are noticing an increase in customers experiencing financial hardship,” says an Allianz spokesperson.

“In the past 12 months, the Allianz High Care teams have seen a 30% rise in those facing vulnerabilities, such as family violence and complex mental health conditions, and a 20% increase of those same customers experiencing financial distress.”

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