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ASIC eyes travel cover review

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The Australian Securities and Investments Commission (ASIC) is considering a review of travel insurance in response to the level of complaints made by consumers.

Plans for a review are at a "very early" stage, a spokesman told insuranceNEWS.com.au.

Travel was the third most complained about type of domestic insurance last financial year, the Financial Ombudsman Service (FOS) annual report showed.

FOS, which has since been replaced by the Australian Financial Complaints Authority, accepted 7885 domestic disputes for the year. Almost two-thirds of the complaints were about motor vehicle or home building cover, while travel insurance accounted for 10%.

Policy wordings often make it difficult to claim, and ASIC is “scoping a review” of the travel insurance market this year, Executive Director Financial Services Michael Saadat told the Sydney Morning Herald.