APRA and ASIC have combined to release claims data for individual life insurance companies. This follows the earlier release of industry wide claim statistics.
For the first time consumers are able to see how a particular life insurance company has performed in handling claims and disputes. The percentage of claims accepted and speed of acceptance are compared to both other insurers and the industry average.
To compare the claims performance of the insurance companies covered by Insurance Watch go to Insurance Claims Statistics.
The regulators intend to use this data to support stronger supervision of insurance companies. “This project represents a joint commitment to enhancing industry transparency and holding life insurers to account for how they treat policyholders,” said Geoff Summerhayes, Executive Board Member of APRA.
The statistics cover 20 different insurers and the following types of insurance cover:
- Total and Permanent Disability (TPD)
- Trauma Insurance
- Income Protection Insurance
- Consumer Credit insurance
- Funeral insurance
- Accidental death or injury insurance
The data has also been segmented according to the following sales channels:
- Through a superannuation fund
- Through a financial adviser (broker)
- Directly through an insurer
The overall results, covering the 12 months to 30 June 2018, show that 92% of all claims have been paid in the first instance, which is in line with previous reports. The data also confirmed the finding of the 2018 ASIC report that the percentage of claims paid is generally lower for insurance purchased directly from an insurer.
APRA’s report on Life Insurance Claims and Disputes Statistics focusses on the soundness and stability of life insurance companies. ASIC on the other hand has produced online information aimed at helping consumers make informed decisions.
The ASIC MoneySmart life insurance claims comparison tool shows each insurer’s claims acceptance rates, average claim time, the number of claims related disputes and policy cancellation rates.
APRA and ASIC will continue to collect claims data from the insurers and release twice yearly updates.