Pet insurers have improved product disclosure after a series of complaints from consumers, according to the Australian Securities and Investments Commission (ASIC).

Concerns included insufficient or confusing disclosure on policy limits, excesses and pre-existing conditions and exclusions, an ASIC review found.

Pet insurance was sometimes inaccurately compared with health insurance, while benefit and promotional examples conflicted with actual policies.

The regulator found a significant increase in disputes received by the Financial Ombudsman Service last year and this year, while consumer group Choice raised concerns in a review in late 2011.

“Owning a pet can be expensive and pet insurance can help manage that expense by covering veterinary costs,” ASIC Senior Executive Leader, Deposit Takers, Credit and Insurers Greg Kirk said.

“However, it is important consumers clearly understand what is and what is not covered by a policy, so they can weigh up whether it is worth buying.”

Pet insurers and distributors have agreed to improve product disclosure statements and promotional material, including websites, ASIC says.

Choice Head of Media Tom Godfrey says the group continues to receive complaints about pet insurance and is working on its own review, to be released early next year.

“The complaints are numerous and varied and come in fairly frequently,” he told insuranceNEWS.com.au.

The group’s 2011 report recommended a number of products for cats and dogs, and raised concerns about a lack of product differentiation and restrictions on policies.

Pet insurance underwriters in Australia are Allianz, with the Petplan and PetCover brands, and Hollard, with its PetSure venture, which underwrites brands including RSPCA Pet Insurance, Woolworths Pet Insurance and Bow Wow Meow.

Allianz says ASIC made suggestions to improve the clarity of some relatively minor clauses in product disclosure statements.

“Allianz welcomed ASIC’s suggestions, given our desire to ensure consumers fully understand the features and benefits and terms and conditions of our pet insurance products, so as to minimise the potential for any confusion or misunderstandings,” Allianz GM Corporate Affairs Nicholas Scofield said.

Hollard says it worked with ASIC to clarify parts of product disclosure statements and has removed irrelevant clauses.

“Hollard takes the disclosure and promotion of its products very seriously,” a spokesman said.