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Insurance Business | 17 Oct 2016, 12:37 PM Agree 0
ASIC has admitted to a parliamentary committee that it has been gagged by big insurers from releasing the names of life insurers that deny claims
  • MichaelD | 17 Oct 2016, 01:34 PM Agree 0
    Not being familiar with life insurance, I envision that permanent disability is an area perhaps subject to higher levels of fraud compared to general insurance, much like is seen with work-cover. I would be interested to see whether these denials are due to 'fine print', issues with the evidence being provided to the insurer, or just flat out fraud.
  • Martin | 17 Oct 2016, 03:27 PM Agree 0
    Whilst our Brokerage does not get involved with Life/Disability risks directly there are three aspects to this enquiry and adverse publicity which reflects on the whole Insurance Industry which is unfortunate.

    1. Any proof of "bonuses" paid by any Insurer to get out of paying claims is offensive to the principles of all Insurance contracts both Life and General products and any such organisation having such a practice should be named and shamed and such management be dismissed for the good of the whole Insurance Industry.

    2. "You can lead a horse to water----" but you cannot force consumers to actually read or be forced to read understand Policy Wordings ( PDS). I consider it totally unreasonable for any Agent/Broker/Insurer to sit and read thru and explain a whole document to every possible Insured event. That would also open a "can of worms"- "Oh! I don't think that was clearly explained to me" comments will be a daily occurrence.

    3. The "front up" commission structure surrounding what can be quite expensive products- especially Disability Insurance should perhaps be reviewed as this can easily lead to sell a totally unsuitable product simply because of the commission's to be made and not having available suitable alternatives.

    The more consumer laws potentially introduced will only add to consumer costs and with "on-line" access utilised by many younger consumers in the modern era will create only more consumer complaints to Insurers and regulation authorities.

    Think long term customers not short term would be a much better approach.

    Leave Insurance to professionals in the Industry to advise and assist and not some counter staff or Agents very basically trained to sign up their say, Banking/Association ,customers to contracts that simply do not meet their needs and expectations.

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