A new study by Allianz Australia and the National Ageing Research Institute (NARI) has found that a majority of Australians remain unaware of the specific insurance-related vulnerabilities facing older individuals, even as recognition of financial elder abuse rises.
The report, “The Risks Facing Older Australians with Insurance,” outlined challenges older policyholders encounter when engaging with insurers, including exposure to scams, difficulty navigating policy obligations, and susceptibility to exploitation following natural disasters.
While 84% of respondents recognised financial abuse as a form of elder mistreatment, 65% said they were unsure how to help a family member facing abuse related to an insurance claim. More than 50% also admitted to lacking awareness of the particular insurance risks affecting seniors.
Dr Marina Cavuoto, senior research fellow at NARI, said the findings underscored the importance of addressing how insurance processes can inadvertently contribute to financial vulnerability.
“As Australia’s older population continues to grow, addressing elder abuse within services like insurance becomes even more critical. We hope that the research and report we developed with Allianz is the first step of many to understanding how elder abuse and mistreatment can present in different context and ensuring older Australians are treated with dignity and have access to safe, supportive services,” she said.
The study highlighted common issues experienced by older customers, including underinsurance, difficulty keeping up with home maintenance requirements linked to policy conditions, and the influence of fraudulent operators.
One case described a nonagenarian who accepted a cash settlement for bushfire-related property damage after being approached by an unauthorised claims handler. The handler took a 25% fee, leaving uncertainty around the adequacy of funds for repairs.
Allianz’s internal claims data showed that for customers over 65, the most frequent claim types include property damage, storm-related events, and fires, each comprising roughly 16% to 17% of cases. Following recent events like Ex-Tropical Cyclone Alfred, the insurer proactively contacted older customers, offering welfare checks and claims assistance.
In response to these risks, Allianz has introduced several initiatives, including specialised staff training on elder abuse and cash settlement risks, referrals to external support services, and direct contact through its High Care claims team.
Older customers receive calls post-disaster to ensure they are informed and supported in managing claims.
Matt Anderson, head of retail property GI claims at Allianz, said the research has led to targeted actions.
“The report has highlighted risks older Australians are more susceptible to and has provided practical insights to enable Allianz to better support customers. We hope that our work in the space will raise awareness and empower individuals and their loved ones to better safeguard their families and navigate the claims process with confidence,” he said.
Survey participants also expressed expectations for insurers to adjust services to better support older Australians. These included simplifying policy information, establishing dedicated support teams, and ensuring staff are equipped to handle claims involving vulnerable individuals.
The report aligns with ongoing updates to the General Insurance Code of Practice, aimed at enhancing protections for consumers experiencing hardship or vulnerability.
Parallel efforts are also being made across sectors to address financial abuse. Flequity Ventures’ Respect & Protect Index 2025 noted that 50 Australian companies across 10 industries have revised their terms and conditions to prevent the misuse of financial products and services in abusive relationships. This initiative is projected to impact more than 20 million Australians.
Public sentiment strongly supports these moves, with a national survey indicating that 96% believe businesses should protect customers from financial abuse. Despite this, only one in four are aware of existing measures.
Australian life insurers have also introduced a new framework – Best Practice Guidance on Family and Domestic Violence – released by the Council of Australian Life Insurers (CALI). Developed with input from survivors and social enterprise Flequity, the guidance promotes safe, confidential engagement with customers affected by abuse.
