Recent data from Allianz Australia has revealed a steady increase in the number of Australians affected by family violence, with the insurer reporting substantial growth in claims related to domestic and family violence over the past four years.
The trend highlights a rising demand for tailored support from insurers as the holiday season approaches, a period that often sees heightened domestic violence incidents.
Allianz noted a 70% increase in support provided to customers experiencing family violence over the past four years, with a 31% rise recorded in the last 12 months.
Motor insurance accounted for the majority of claims (60%), but property-related policies – some involving total loss of property – make up a significant portion (40%).
The High Care Team, Allianz’s dedicated support unit for vulnerable customers, has seen demand nearly double from 2023 to 2024.
The team provides assistance designed to address the unique challenges faced by customers experiencing abuse, such as:
Laura O’Donnell, head of customer advocacy, human rights, and community at Allianz, said family violence incidents have grown more severe in recent years.
“Concerningly, what we are seeing is not only the volume of cases related to family violence increasing, but the severity is also on the rise,” she said.
In the past four years, Allianz has supported over 1,000 customers who identified as victims of domestic violence. This year, the insurer has dealt with eight cases where perpetrators intentionally set fire to homes as an act of abuse.
Allianz illustrated the role of its High Care Team through a real-life case involving a separated couple, Katherine and Bryce (not their real names).
After filing a claim for water damage, Katherine informed Allianz that her separation from Bryce was due to sustained abuse. Allianz intervened to minimise Katherine’s interactions with her former partner during the claims process.
The team ensured the property was secure during repairs, eliminated direct communication between the parties, and meticulously documented the process to prevent potential misuse of the information in ongoing custody proceedings.
In response to these issues, Allianz has introduced a “perpetrator clause” to its Family Violence Policy, making it clear that insurance products cannot be used for abusive or coercive purposes.
Under this policy, customers found to have engaged in such behaviour may face non-renewal of their policies.
Allianz encourages individuals affected by family violence to take steps to safeguard their policies and claims – tips that insurers and brokers could share with their clients:
Allianz is one of the Australian businesses that joined the Respect and Protect initiative, developed by Flequity Ventures, to address the misuse of financial products in abusive relationships.
The initiative brings together 21 firms, including banks and telecommunications providers, to establish stronger protections for vulnerable customers.
Catherine Fitzpatrick, founder of Flequity Ventures and creator of #respectandprotect, said joining the Respect and Protect initiative reflects Allianz’s commitment to battling abuse behaviour.
“By joining the Respect and Protect business initiative, Allianz is making it clear they don’t want their products weaponised and they won’t be a safe haven for financial abuse. It’s another example of their leadership to improve outcomes for customers experiencing domestic and family violence,” she said.
The Insurance Council of Australia (ICA) has expressed support for these initiatives and highlighted its work to address financial abuse.
“The ICA strongly condemns financial abuse of any kind, and the insurance industry is committed under the General Insurance Code of Practice and supporting guide to address and combat domestic and family violence and financial abuse, as well as ensuring the safety and financial security of customers,” an ICA spokesperson told Insurance Business.
