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ACIL Presents Submission to Government Inquiry, Proposing Standard Definition Enhancements in Insurance Sector

The Australian Consumers Insurance Lobby is delighted to present its submission to the Federal Government Inquiry on Standard Definitions and Standard Cover for Insurance. This submission is a critical step towards fostering a fairer and more transparent insurance market.





At the heart of our proposal is a call for fundamental reforms that prioritise consumer interests and address longstanding challenges such as underinsurance and policy complexity. Our submission highlights the urgent need for action to mitigate the detrimental effects of consumer confusion with insurance policies and underinsurance.


Key highlights of our proposal include:


  • Consumer-Centric Principles: We emphasise the importance of focusing on overarching principles rather than intricate definitions to offer greater clarity to consumers. By prioritizing consumer interests, insurers can provide more transparent and equitable coverage options.

  • Standardization for Clarity: We advocate for the standardisation of insurance policy terms and definitions to eliminate ambiguity and ensure consistency across policies. This will empower consumers with greater clarity and understanding of their coverage.

  • Enhanced Transparency: Insurers should be obligated to provide consumers with fact sheets containing information on commonly declined claims and disputed issues. This transparency will empower consumers with crucial insights into potential claim denials and disputes.

  • Proactive Approach to Underinsurance: Insurers must take a proactive role in addressing underinsurance by taking action to ensure adequate coverage levels or, at the very least, notifying consumers of potential underinsurance at policy inception.

  • Educational Initiatives: We advocate for educational initiatives to improve consumer understanding of insurance policies and coverage options. Empowering consumers with knowledge will enable them to make more informed decisions about their insurance needs.


ACIL urges policymakers, industry stakeholders, and consumer advocates to support these vital reforms to create a fairer and more consumer-centric insurance market. Together, we can ensure that insurance policies are designed to protect consumers and provide them with the security and peace of mind they deserve.



ACIL Submission Standard Definitions and Standard Cover For Insurance (Final)
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