Recent media releases by Australian Securities and Investments Commission (ASIC) relating to Add-On* insurance and life insurance highlight that customers do not understand the cover they have purchased.
The disclosure taskforce highlighted the failure of the disclosure regime as an inherent design flaw.
'…efforts have largely focused on legal and compliance imperatives to provide accurate information which was, in some sense, clear. The behavioral science contribution to the work of this Taskforce has significantly refocused attention on communication outcomes, rather than simple well-meaning legal tests.’
WHAT DOES A BEHAVIORALLY BASED DISCLOSURE APPROACH LOOK LIKE?