Eight insurers are among 49 Australian businesses altering their policies and contract terms in a stand against financial abuse.

Allianz, Hollard, IAG, Medibank, NRMA Insurance, QBE, Suncorp and Zurich are part of the push led by Flequity Ventures.

The social enterprise’s founder, Catherine Fitzpatrick, a former bank executive, wants businesses to make it clear that financial abuse is unacceptable and can lead to customers receiving warnings or suffering account suspension and closure.  

The aim is to “trigger a public conversation about the weaponisation of products and services, and to change perpetrator behaviour”.  

Flequity says businesses can promote respect and protect against the “hidden epidemic” of financial abuse – when money is used to control another person.

Such abuse is “a tactic of coercive control, which is a lead indicator of homicide”.  

Allianz policies now state there are “consequences for customers who use our insurance to harm others”.

“If they are found to have used our products, services or processes in this way, we may decline to renew their insurance,” its wording says. “In addition, we may report unacceptable conduct to law enforcement.”

Hollard’s documentation tells policyholders: “We do not tolerate the ‘weaponisation’ of our products and services to cause harm to others.”

Perpetrators misuse services such as insurance to target victim-survivors. They might accrue debts in their name, change the amount a property is insured for, cancel a joint policy or reject hardship arrangements.

Some abusers redirect claims payments to accounts partners cannot access.  

“It can last long after a relationship has ended. Businesses may unintentionally help financial abusers because their products and services may be weaponised as a tactic of coercive control and manipulation,” Flequity says. “Changing contracts makes it explicit businesses won’t tolerate the misuse of their products to cause financial harm.”  

ICA CEO Andrew Hall praised Ms Fitzpatrick’s “determined and committed effort”.

“Having someone who understands not only how commercial businesses operate, but the broader political and policy landscape, has meant you have achieved breakthroughs with business,” he said. “You continue to earn the respect and trust of the financial services sector and I hope other industries are knocking on your door for a discussion.”  

In December, a parliamentary inquiry recommended all financial service and product providers ensure such abuse is explicitly referenced in terms and conditions.  

Allianz head of customer advocacy, human rights and community partnerships Laura O'Donnell told Dive In attendees last September the insurer supports about 500 customers experiencing family violence each year and has seen a 200% increase in customers who cannot afford their premiums due to financial abuse.  

“They’ll be leaving a relationship. Their funds have been frozen ...  they now can’t use their insurance. They are escaping that situation using their car,” Ms O’Donnell said.    

Some insurers are introducing a “conduct of others” clause to allow victims to claim when perpetrators deliberately damage property.

“We urge all businesses with joint accounts, credit and online services to join the first movers of this globally leading action,” Flequity says.

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