Allianz Global Assistance has called for an overhaul of the way travel insurance is provided with credit cards, following a review by the Australian Securities and Investments Commission (ASIC).

Card issuers and insurers have agreed to improve disclosure on travel cover after ASIC’s investigation of 17 credit card brands – including those of the big four banks – in response to consumer complaints and disputes to the Financial Ombudsman Scheme.

MasterCard and Visa require insurance to be provided with cards, but conditions imposed by card issuers vary and can be hard for consumers to understand, leading to complaints when claims are rejected. Cardholders may have to book their ticket on the card or spend a minimum amount to activate travel insurance.

Allianz Global Assistance National Manager Banking and Finance Linda Avery says the products need to be redesigned so consumers are clear on eligibility for cover and benefits.

“There are a lot of choices, so if people know what they are entitled to they can make an informed decision,” she told insuranceNEWS.com.au.

Allianz has designed a card for Commonwealth Bank without a minimum spend requirement. It provides a certificate of insurance that explains the cover. Consumers must advise when they are travelling and disclose any pre-existing medical conditions, and can pay more to be covered for health issues or risky pursuits.

Ms Avery says better transparency will reduce complaints and improve customer satisfaction.

It may raise the cost to the insurer, but she says there are ways to offset that by selling standalone policies to people who do not qualify for cover attached to cards, or who want extra cover.