Hollard Insurance has updated its policy documents to address how insurance can be used in cases of family and domestic violence, including situations where a perpetrator may benefit from a claim or leave a victim-survivor without cover.
The insurer said it added new clauses to its Product Disclosure Statements (PDSs) as part of its pledge to the Respect and Protect campaign, which calls on businesses to revise their terms to reduce financial abuse risks. The issue has gained attention in Australia after cases where survivors said standard exclusions left them without cover for damaged or lost property.
One of the changes is a formal definition of family and domestic violence in Hollard’s PDSs. The insurer has also added provisions that allow it to act when family violence or financial harm is known or suspected. Hollard said these may let it, where appropriate, cover separate temporary accommodation for victim-survivors up to policy limits, and choose repair or rebuild options instead of a cash payout when that would better help the person affected.
The changes also apply when a perpetrator changes or cancels a policy. In those cases, Hollard said it can make a separate offer of insurance and support so customers do not become unknowingly uninsured.
Paul Fahey, chief executive officer at Hollard, said the changes are meant to make the company’s position clear when its products are used in harmful ways. The updated policy terms are also backed by staff training to help employees identify, manage and support customers where family and domestic violence is known or reasonably suspected.
“We recognise that family violence is complicated, and can take many different forms, each with different impacts,” he said. “These changes make it clear that we do not tolerate the use of our products to cause harm, and that when customers purchase a product from us, they can expect us to respond in a way that supports victim survivors.”
The move comes amid wider discussion in the insurance sector about Conduct of Others clauses, which advocates say can give insurers more flexibility in claims involving financial abuse and domestic violence.
Catherine Fitzpatrick, CEO of social enterprise Flequity Ventures, which runs the Respect & Protect business initiative, said insurance policies and claims processes can be used by perpetrators to keep control over victim-survivors.
“Insurance should be a safety net, but too often perpetrators of family and domestic violence exploit policies and claims processes to maintain control, leaving victim survivors without the assets or financial security they need to rebuild their lives safely,” Fitzpatrick said, adding that Hollard’s changes, including the Conduct of Others clause, are part of efforts to address that problem.
“The changes Hollard has made to address financial abuse, including the introduction of a Conduct of Others clause, are an important step towards ensuring insurance products can’t be weaponised against the very people they’re meant to protect. They set a standard all insurers should follow.”
Hollard said it developed the changes after consulting people with lived experience, industry experts, and advocacy groups including Safe and Equal and Uniting Vic.Tas.
“Understanding the different stories, approaches and support gaps means that we can engage with our customers experiencing family violence in respectful, inclusive, and most importantly, safe ways, as they navigate insurance with us,” Fahey said.
