Results published today from a Central Bank onsite inspection of gadget insurance selling firms show that more information needs to be provided to consumers when buying gadget insurance. Let’s take a look at the details.
The new inspection investigated three insurance firms, which account for over 80% of the market in Ireland. These firms sell gadget insurance through brokers and retailers. The inspection was supported by the Central Bank’s consumer research, which examined consumers’ attitudes, behaviours and experiences when buying gadget insurance.
Claims acceptance rates on gadget insurance are high, at an average of 91.6% across the firms inspected but it’s important to understand the details of your insurance policy so that you can meet the right criteria to make a successful claim, something that might be difficult to do when we consider the key findings from the inspection...
The key takeaways:
The results of the inspection found that there are significant problems around the sale of gadget insurance. Mobile phone insurance is the most common type of gadget insurance and is generally sold to consumers as an add-on when they are buying a new phone. So what’s the problem?
1. Information about gadget insurance is inadequate for the most part:
The inspection found that, in certain circumstances, product information provided to consumers was inadequate. Manufacturers and distributors of gadget insurance need to do more to ensure that consumers are made aware of the key product features, benefits, exclusions, how to make a claim, and the total cost of the product.
2. Many customers are unknowingly paying for double insurance!
As much as 21% of consumers do not cancel existing policies after taking out a new gadget insurance policy. By doing so, they are paying for cover they no longer need and can be paying ‘on the double’. Sellers of gadget insurance should and in fact, are required to consider any relevant existing insurance cover when recommending a new policy to a consumer.
3. Gadget insurance cost isn’t always clear
The inspection showed that the overall price of gadget insurance is not always clearly presented to consumers. Insurance firms are expected to provide additional information on price to empower consumers to make informed choices.
Do you think gadget insurance is important?
Do you have a gadget insurance policy and if so, were you given clear and concise information on the details of your policy, how much it was going to cost and how to make a claim? Tweet us your experiences @bonkers_ie. We’d love to hear your perspective!