FCVic has made a submission to the Australian Financial Complaints Authority (AFCA) in response to its consultation on the Draft Approach to General Insurance Claims Handling. Drawing on insights from financial counsellors—particularly those supporting communities affected by natural disasters—the submission calls for clearer standards, stronger consumer protections, and trauma-informed practices in insurance claims handling.

FCVic’s submission highlights key areas for reform, including the need for transparent cash settlement processes, fair treatment of vulnerable complainants, and improved access to independent expert assessments. It also recommends clearer expectations around insurer conduct, especially in relation to delays, subcontractor accountability, and the handling of temporary accommodation costs. The submission urges AFCA to embed principles of fairness, equity, and consumer empowerment in its final Approach, ensuring that people experiencing hardship are not further disadvantaged by opaque or inconsistent claims processes.