Conclusion 6

Limited consumer understanding is a significant contributor to poor consumer outcomes in the home and travel insurance markets. To some extent this is a result of the complexity of the products themselves and, more broadly, levels of financial literacy. This is also a result of poorly explained terminology and inadequate provision of information to consumers. While there is a limit to what regulation and disclosure can do to improve understanding, we believe that further efforts must be made to provide consumers with better quality information to understand products and make informed purchase decisions.