Summer across Australia is recognised as storm season, with October to April often bringing an increased risk of thunderstorms, hail, damaging winds, heavy rainfall and flooding1 – though conditions can vary each year. It’s also a time when certain businesses and individuals – sometimes known as ‘claims management agencies’ – may become more active in storm-affected communities.
Also called claims advocates, disaster chasers or third-party claims agencies, these operators often appear after severe weather events to offer help with lodging and managing insurance claims. Understanding who they are – and the role they play in the claims process – can help you make informed decisions if someone contacts you after a weather event.
In this article, we’ll explain what claims management agencies are, and what to keep in mind if you’re approached by one.
What is a claims management agency?
A claims management agency is a business or individual that offers to help people lodge and manage insurance claims after a weather event.2 In most cases, they don’t represent your insurer, and some of these services may charge fees, which could increase your out-of-pocket costs. They may reach out in a number of ways to promote their services.
Common services they offer include:
- Managing and lodging an insurance claim on your behalf
- Inspecting and identifying storm-related damage
- Coordinating and overseeing repairs
- Representing customers during the claims process.3
They might appear immediately after a storm or return months later to offer assistance.3
Things to look out for with claims management agencies
After a severe weather event – especially if your home or property has been damaged – it’s understandable to seek help. That’s often when claims management agencies approach people to offer support with lodging or managing a claim.
It’s worth knowing what to look out for if you’re approached by a third-party claims service, be aware if they:3
- Say they can identify damage to your property that you were unaware of, sometimes by offering a “free inspection”
- Promise unusually fast repairs
- Request money upfront
- Offer repairs at prices they might say are lower than standard industry rates
- Don’t hold the appropriate licences for insurance-related services
- Ask you to sign a contract upfront or on the spot
- Suggest they can secure a higher payout from your insurer if they handle the claim on your behalf.3
If you are approached by an agency and any of the above points raise questions for you or you’re unsure about engaging their services, give your insurer a call – they can talk things through.
What to consider before engaging a claims management agency
Before accepting help from any third-party service after a storm, make sure you understand who they are and what they’re offering. Taking a moment to check the details might help you feel more confident when choosing support for your situation.
Always check credentials
Any business or individual offering financial or insurance-related advice needs to hold the right licences. Before agreeing to anything, it’s a good idea to ask for these details and make sure they’re current:
- An Australian Financial Services (AFS) licence, which means they’re obligated to provide efficient, honest and fair financial services.4 You can check their credentials in the Australian Securities and Investments Commission (ASIC) database.5
- A Financial Services Guide (FSG) outlining the financial service offered, their fees, and how they handle complaints.6
- Intended fees for their services.
- Their Australian Financial Complaints Authority (AFCA) membership.
Most companies should be comfortable sharing this information with you. If they’re unable to provide it, or the details don’t quite line up, it may be a sign to pause and ask a few more questions before moving forward.
You can check licensing information through the ASIC database and their AFCA Membership which may help you decide whether or not you wish to employ their services.
Know your rights
If you decide to engage a claims management agency and later have concerns about the service you received, it’s important to know what options are available. If you find that the claims agency is acting without the appropriate AFS licensing, you can also report misconduct or unlicensed activity to ASIC.
You can start by raising the issue directly with the agency – there should be a complaints process included in their FSG – and give them a chance to resolve it. If – after that – you’re not satisfied, you may be able to take the matter further.
The AFCA handles complaints about financial services providers, including situations where customers feel something hasn’t gone to plan. This might include concerns such as:
- Information that wasn’t properly explained or was unclear
- Instructions you provided that weren’t followed or were delayed.7
It’s worth noting that AFCA will only consider complaints about a Financial Firm that is an AFCA member when the complaint is submitted and falls within their Terms of Reference (TOR).8 If you'd like to escalate a concern, you can contact AFCA by phone, online, email or written letter.6
How engaging a claims management agency may impact your claim
If you lodge a claim with your insurer, during the claims process they will organise to have any damage assessed. If they accept your claim, your insurer will authorise repairs to an available service provider or pay you a cash settlement to manage the repair or rebuilding work yourself.9 Depending on your cover, you’re required to pay any applicable excess listed on your policy schedule.
Some claims management agencies may be insistent on homeowners signing a contract on the spot for repair work and promising an insurer will pay. This could leave homeowners liable to pay an inflated repair cost not covered by their policy – and insurers will only pay for work approved by them and covered under the terms of their policy.10
"Employing tradespeople through a claims management agency to fix any damage means you may risk your insurer not covering the costs of these repairs,” says Insurance Council of Australia (ICA) Deputy Chief Executive, Kylie Macfarlane when speaking to the ABC.11
Understand your insurance policy with Youi
If you’re insured with Youi, your policy will outline the types of damage we cover – whether it’s for your home buildings and contents, car, motorbike, small business or other insured property.
After a severe weather event, there are a few things we will and won’t do – knowing these might help you spot when something doesn’t feel right:
- We won’t send a tradesperson or builder to your home without notifying you and providing their details first.
- Depending on your policy, we may only cover certain repairs12 – so before signing a contract with a service provider, it may be worth giving us a call.
- Anyone attending your property on our behalf – whether it’s a tradesperson, builder or someone else – won’t ask you for payment.
- If someone turns up to help with repairs, ask for their identification such as a builder’s licence or driver’s licence, and check with us if you’re unsure.
- If you choose to sign a contract with a claims management agency, remember there’s usually a statutory 10-day cooling-off period.3 This is a set time where you can change your mind after signing a contract.
- Your Youi insurance policy doesn’t cover fees for services provided by claims management agencies, we will only cover repairs authorised and arranged by us with a service provider as part of your claim.12
- Youi’s Quality Guarantee13 only applies to repairs that are authorised and arranged by us as part of your claim. Any work completed outside of this won’t be covered under our Quality Guarantee.
If you’re ever unsure, get in touch with us and we can talk you through your options.
How we can help with your claim
If your insured property has been damaged after a severe weather event, get in touch with us as soon as you can – our team is available to help you lodge a claim over the phone or you can lodge 24/7 online. We’ll help you get the claims process underway.
When it’s safe to do so, a few simple steps following a natural disaster may make things easier:
Assess the damage
- Document the damage using photos, videos and notes of what happened and when.
- Call your insurer to lodge your claim.
We’re here to help. Give us a call on 13 YOUI (9684) to start your claim or to ask any questions about your policy. For more helpful tips and practical resources, visit our Catastrophes and Severe Weather Hub.
1 Source: Bureau of Meteorology – The Bureau issues long-range forecast for summer | The Bureau of Meteorology. December 2025.
2 Source: Financial Rights Legal Centre - Insurance Claims Management Services - Financial Rights Legal Centre, 2025
3 Source: Insurance Council of Australia - Look out, disaster chasers about - Insurance Council of Australia, 2021
4 Source: ASIC Australia - AFS licensee obligations | ASIC, 2025
5 Source: ASIC Australia - ASIC Professional Registers Search, 2025
6 Source: Moneysmart.gov.au - Financial Services Guide (FSG) (glossary definition) - Moneysmart.gov.au
7 Source: AFCA - Types of insurance complaints | AFCA, 2025
8 Source: AFCA - Rules and Guidelines, 2024
9 Source: Insurance Council of Australia – Insurance recovery and claims process, 2025
10 Source: ICA - Claims continue to rise as ICA warns of disaster chasers - Insurance Council of Australia, 2025
11 Source: ABC - Queenslanders warned about 'disaster chasers' targeting storm-hit homeowners - ABC News, 2025
12 This is general advice only and has been prepared without taking into account any person’s objectives, financial situations or needs. Products issued by Youi Pty Ltd. Consider our relevant PDS at youi.com.au when deciding if this product is right for you. PDS and TMD available at youi.com.au.
13 Where we arrange, authorise and pay a service provider for repairs, we will guarantee the quality of the repairs for as long as you are the owner of the insured property. The guarantee includes the rectification of any defects caused by poor workmanship, or faulty materials, related to these repairs. Product issued by Youi Pty Ltd. Consider our relevant PDSs when deciding if a product is right for you. PDSs and TMDs available at youi.com.au.
