Approach to general insurance claims handling - Australian Financial Complaints Authority (AFCA) - August 2025
Overview
In August 2025, The Salvation Army provided a submission to the Australian Financial Complaints Authority (AFCA) in response to the draft AFCA Approach to general insurance claims handling (the Approach). Drawing on the experience of our Moneycare financial counselling service, the submission identified opportunities to improve the Approach to better achieve the Approach objectives to inform consumers and consumer advocates.
Key points
Enhancing accessibility of the Approach for wider audiences
The development of an easy-read version, a print-friendly format, and a one-page summary would ensure the document is usable by a broader range of consumers.
Opportunities to increase the clarity of the Approach
Clearer definitions of key insurance terms, consistent use of language, and improved guidance for what general insurance products are covered by the Approach would help consumers better understand their rights and options, and reduce confusion when making a complaint.
Possible inclusions to reduce misinterpretations
The addition of more diverse examples of unfair cash settlements and a small business case study would enhance the identifiable relevance of the Approach for consumers. Providing this information, in addition to explicit references to AFCA’s compensation limits, would help ensure the Approach reflects the full scope of AFCA’s work and is interpreted accurately.