Allianz is examining ways to better support older customers during claims, to prevent financial abuse.

Threats facing elderly policyholders include fraudulent builders and claims management companies, scams, underinsurance, cash settlement issues and challenges meeting home maintenance obligations, according to a report produced with the National Ageing Research Institute.

Older people are 53% more likely to use claims management companies for flood claims and 177% more likely to take cash settlements than policyholders aged below 60.

Allianz says it is “working to bridge this significant knowledge gap to better support vulnerable groups”. 

Head of retail property claims Matt Anderson said: “We hope our work will raise awareness and empower individuals and their loved ones to better safeguard their families and navigate the claims process with confidence.

“We recognise the urgent need to address the financial abuse of older Australians as it relates to insurance.”

The report details scams such as tradies approaching people in their homes and doing subpar work, failing to show up again or not completing repairs after being paid.

Allianz says claims management companies target vulnerable people and often “provide no real assistance, leaving the homeowner out of pocket and with a bigger financial burden”. They may deduct a 25% service fee from cash payouts, and there can be “uncertainty about whether the remaining funds are adequate for the necessary repairs”.

Allianz says people accepting payouts should ensure the money goes into “your account rather than someone else’s. Given insurance companies are experts in managing repairs, you may be better off requesting they manage the process for you.

“This ensures that everything is up to standard, making sure you stay covered in the long run.”

After Ex-Tropical Cyclone Alfred, the insurer reached out to customers over the age of 75 and set up a helpline where they could make claims, book loss adjustors and get help securing temporary accommodation.

It says it offers referrals to financial counsellors and ensures emergency accommodation is suitable, considering health and mobility. In some cases, Allianz will also offer an internal advocate to help customers negotiate claims processes.  

The number of over-70s in Australia has risen 84% since 1981 to more than 4 million.

See the report here.