Tag: insurance

The Risks of Underinsurance

One of the biggest things that keeps us awake at night as insurance brokers is when friends, family or clients are uninsured or underinsured. Some will opt out of insurance claiming cost as the biggest deterrent, but many have never properly had underinsurance explained to them and simply don’t understand the implications on their business or family.

‘If you think insurance is expensive, try ignorance.’

They say that the cost of education is high, but the cost of ignorance is higher – well, today we’re going to share some education with you for FREE in hopes that it helps you understand and make informed decisions about your risks. And so we can get a good night’s sleep. ?

Understanding underinsurance

We get it, insurance isn’t the most interesting and compelling topic. Many consider it a grudge purchase and just look for the easiest and cheapest way to cover the bare minimum or mandatory insurance requirements. And then many of us experience an insurable incident and realise the value and importance of insurance just a little too late.

If this sounds like you, you’re not alone. Research indicates that Australia is one of the most underinsured nations in the developed world[1].

What is underinsurance?

Underinsurance is defined as the situation when your insurance covers less than 90% of the total costs in the event of a loss[2].

This can apply to business insurance, home insurance, car insurance or most other types of insurance policies.

Some contracts have averaging provisions that reduce the sum paid out by a certain percentage when the sum insured is less than the value of the insured object.

For instance, if you insure your contents for 25 per cent less that their true value and lodge a $30,000 claim, the insurer may reduce your claim by $7500[3].

Therefore, being uninsured or underinsured may not save you money in the end, and could cause a great deal of financial difficulty and heartache in a worst case scenario.

5 common reasons you could be underinsured

  1. When you renew your policy each year you don’t check the details or alert your insurance broker to anything that’s changed in your situation.
  2. You’ve changed, renovated or added features to your home.
  3. You’ve purchased expensive items, such as machinery, jewellery or electronics.
  4. You haven’t calculated an accurate value for your home or contents.
  5. You didn’t include the full costs that could be incurred in the case of an incident in your total sum, such as demolition, removal of a debris and rebuilding.

Am I underinsured?

The best way to get confident about having a strong insurance solution is with the help of your insurance broker. And insurance is not a ‘set and forget’ programme – you should have an open and honest discussion with your broker each year ahead of your renewal. The good news is that having appropriate insurance doesn’t necessarily mean you have to spend a huge amount more money – with the help of your broker, many insurers will also take into account other factors such as your risk management practices when it comes to pricing. Get some peace of mind, and talk to your insurance broker about underinsurance today!

[1] According to a survey conducted by Zurich in partnership with Oxford University

[2] ASIC definition on MoneySmart.gov.au

[3] Source: http://understandinsurance.com.au/do-you-have-enough-insurance

Best doctors, GS Insurance, CGU, Trundle, NSW

Read this Best Doctors case study and find out more about our offer

In case you missed it, GS Insurance is proud to be able to offer Best Doctors through a partnership with our network (cbn) and CGU.  Best Doctors is exclusively available to CGU Countrypak customers only.

Read below for a real life case study on how Best Doctors works.

“We live a long way from a major city and a lot of our consultations are done over teleconferencing. It was a true facilitation to find out the Best Doctors service works remotely. I’m very thankful for all the help and organization the Best Doctors team did for us.’’

Best doctorsName: Baxter
Reason for contacting Best Doctors: To confirm her son is receiving the right treatment
Best Doctors expert specialty: Paediatric Neurology
Service Used: In-Depth medical review


Courtney was having a healthy pregnancy until the situation changed when she underwent her 35th week ultrasound. The results revealed that the fetus had hydrocephalus, a condition in which fluid accumulates in the baby’s brain that in cases can cause brain damage.She was sent for an immediate MRI scan which confirmed that the baby had indeed experienced severe brain damage and that Courtney’s child might not survive birth.

Thankfully little Baxter was born and to his family’s relief, he wasn’t sent to the intensive care unit as they had originally expected. However, additional testing confirmed evident brain damage. Baxter wasn’t able to reach his growth and development milestones. He is unable to sit or crawl, communicate effectively through speech, has epilepsy and also has demonstrated signs that suggest a visual impairment. He also suffered from a hearing problem but thanks to the bilateral cochlear implants he had inserted he is now able to hear. His treating doctors officially diagnosed him with cerebral palsy, which causes Baxter to have impaired muscle coordination as a result of his brain damage.

A happy baby, Baxter always smiles and tries to interact with people, but he does require medical treatments and constant follow-ups. One of the biggest challenges Baxter’s parents face, is that getting Baxter the attention he needs from healthcare professionals is difficult as they don’t live close to a major city. They often have to resort to virtual sessions with physiotherapists as well as speech and occupational therapists. Courtney, who was naturally very concerned about her son’s well-being and development, felt she needed to be reassured that Baxter was indeed receiving the right treatment and care. She decided to reach out to Best Doctors, to use their renowned Second Opinion service accessible via her insurer.

The medical team at Best Doctors offered Courtney the support she was yearning for and they collected all of Baxter’s medical information and history on her behalf. The team prepared a clinical summary to kick-off Baxter’s second opinion process and selected a renowned pediatric neurologist with a sub-specialty in neurodevelopmental disabilities to review Baxter’s case. The specialist agreed with the original diagnosis the boy had received and explained that the cause most likely would have been a congenital CMV infection, a common viral infection that can negatively affect the foetus during pregnancy. The Best Doctors expert provided Courtney with a thorough report in which he explained what treatments would be most suitable for Baxter. Courtney couldn’t be more relieved to receive an additional medical confirmation that Baxter is indeed receiving the right treatment.

Thankful for the chance to review Baxter’s case, the Best Doctors expert encourages Courtney and her family to remain optimistic, as the future is difficult to predict. Even though Baxter will always need special care, Courtney now knows they are following the right treatment path.

It took a load of our shoulders to know that we are doing the right thing with our son. This gave us peace of mind that we are not missing out due to distance. It was great to be able to access international studies through the service.”

Source: http://www.bestdoctorsonline.org/marketing/Case_of_the_month/CGUAu/2017_September_Baxter_Paediatric_neurology.html