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Nine out of 10 life insurance claims that go to decision have been paid in the first instance, according to new data released by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).
The data, which covers the period January 01, 2017 to June 30, 2017, also reveals that different products and distribution channels have different claims and dispute outcomes - with 97% of death claims being paid in the first instance, 84% of total and permanent disability claims, and 87% of trauma claims.
The release completes round two of the pilot phase and will be followed by a third and final round of data collection.
APRA and ASIC said they are now working to set up an ongoing reporting regime (using APRA’s data collection powers) with regular publication of credible, reliable, and comparable data at both aggregated industry and insurer-specific levels, to improve the transparency of life insurance claims practices and the quality of information underpinning public debate and policy-making. This, in turn, should help drive accountability in the sector.
In addition to the release, the agencies are responding to submissions on the May 2017 discussion paper Towards a transparent public reporting regime for life insurance claims information, and seek feedback by July 05 on the proposed approach to industry and insurer-level publications.
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