One-fifth of people don't cancel existing policies after taking out new insurance

Consumers who buy gadget insurance are not given enough information about what is covered by their policy.

A Central Bank investigation into the cost of gadget insurance has labelled it as a priority risk.

It found that one in five people don’t cancel previous policies after taking out new gadget insurance.

The research has been published just a day before Black Friday, when large amounts of tech products are sold.

 

The Bank says manufacturers and distributors need to do more to ensure that consumers are aware of key product features, benefits, exclusions, how to make a claim, and the total cost.

The areas of particular concern are:

  • Inadequate information provided to consumers of gadget insurance policies
  • The risk that Gadget Insurance may not meet consumers’ expectations
  • A lack of identification of target market and suitability assessment. The target market should exclude consumers where the gadget being purchased is already covered by an existing insurance policy held by the consumer.
  • Not enough details about price