Insurance plays an important role in supporting Australians in the face of catastrophic events. Adequate insurance cover is integral to protecting consumers’ most valuable assets and to maintaining and protecting the living standards of all Australians.
Insurance also plays a critical role in the economy. It enables Australians to get back on their feet after events such as extreme weather, accidents, crime, illness or the death of a loved one. When insurance works as expected, it puts people on the path to resilience and recovery. However, when things go wrong, people who are often already traumatised, are ill-equipped to understand and assert their legal rights. Critical problems such as underinsurance and affordability have serious ramifications for the economy, and wellbeing of Australians.
The voice of the insurance industry and large insurance companies is much louder than that of consumers, and has led to some imbalance in the realisation of interests and rights.
We welcome the announcement in 2022 that the Federal Government will sustainably fund this service through the Attorney General’s Department. This ongoing support for the ILS from the Government will assist in promoting compliance in the insurance sector and empowering Australians to assert their legal rights.
