The Insurance Council of Australia (ICA) is to launch a campaign to teach consumers about insurance and its benefits.

GM Communications and Media Relations Campbell Fuller says it forms part of the industry’s response to the natural disasters of 2011.

“We did a lot of analysis and found that increasing the financial literacy of consumers would improve the way [they] engage with their insurance,” he told insuranceNEWS.com.au.

Australians believe insurance is a “must-have”, but they do not look at product disclosure statements and generally buy on price alone, consumer feedback shows.

“One of the key findings was that consumers believe insurance is important, but it’s a grudge purchase,” Mr Fuller said. “They don’t like having to think about having to buy it.”

The Understand Insurance campaign will start later this year, with an online portal providing easy-to-access information, fact sheets and checklists, consumer testimonials and expert tips.

The portal aims to explain product categories and give step-by-step instructions on the insurance process, Mr Fuller says.

“It’s not a sales tool. It’s saying to consumers, ‘Insurance fulfils these functions in your life’.”

ICA has selected Melbourne’s icon.pr to work on the campaign.