Billions of dollars in junk insurance refunds remain unclaimed, and with Australia’s 30 June 2025 deadline fast approaching, AI-driven claims processing is emerging as the key solution.
The 2019 Royal Commission revealed that 2.7 million Australians were mis-sold billions in unnecessary policies, primarily bundled with credit cards and loans.
Despite a six-year rebate window, ASIC data shows that only $5.6 billion has been recovered, leaving a massive pool of potential refunds untouched.
Navigating the AFCA claims process remains a major hurdle for consumers, as complexity and limited industry resources slow down reimbursements.
AI-powered solutions now aim to bridge that gap, accelerating identification of breaches, submission optimisation, and claims resolution.
Insurance claims start-up Claimo has partnered with AI agency Avicenna to develop tools that dramatically improve efficiency and accuracy, offering consumers a fast-track to compensation.
Claimo’s first AI tool, launched in 2024, quadrupled processing capacity, swiftly identifying policy breaches in seconds instead of hours.
“With approximately one in three Australian adults potentially eligible for refunds from pre-2019 loans or credit cards, we recognised the need for a scalable solution,” said Nathan Mortlock, Claimo's founder. “Our collaboration with Avicenna has produced a system that can efficiently handle thousands of new enquiries while maintaining the high success rate our clients expect.”
The upcoming second AI tool, set for release in May 2025, will automate AFCA submissions, using pattern analysis from successful claims to maximise consumer refunds.
The impact is already tangible. Many Australians have secured unexpected windfalls, with one client for example receiving a $3,500 payout through Claimo’s no-win, no-fee model. The platform has helped consumers erase debt, cover rent, and fund overseas travel, highlighting the real-world value of AI-driven financial support.
As demand surges, this tech-led approach is proving to be an essential tool for fair restitution.
“It’s been a real pleasure to lead this project knowing that we’re helping millions of Australians claim back what was always theirs to begin with,” said Nofil Khan, Director of Avicenna. “AI can be ethically implemented if done with the right intention and outcomes, which we are showcasing with this tool.”
Australia’s fintech sector is harnessing AI to eliminate inefficiencies in financial services, from superannuation claims to lending processes.
Claimo and Avicenna’s success underscores how machine learning can drive ethical, high-impact innovation, ensuring everyday Australians are rightfully compensated.
As AI disrupts finance, investors will be watching how these solutions scale globally in consumer claims and beyond.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
