Prove your commitment to paying claims, insurers told
In light of the alleged misconduct against CommInsure clients, all insurers must reassure their clients, advisers and researchers that they are willing to pay insurance claims, argues LifeRisk Partners.
Commenting on an open letter sent to the CEOs of all major life offices, LifeRisk Partners said it has requested a "comprehensive response" to media reports of alleged misconduct within CBA's insurance arm that insurers will restore confidence by adhering to insurance contracts and pay out eligible claims.
"Without confidence that claims will be paid that meet policy terms and conditions, it makes the role of researchers very difficult to assess the relative generosity of policy terms and conditions," LifeRisk Group chief executive Stephen Dingjan said.
"In turn, without confidence in the company claims processes, the role of advisers in selecting an appropriate product to recommend to clients is very difficult indeed," he said.
Within the letter itself, LifeRisk Partners said failure to provide such reassurance or improved confidence in the payment of claims could result in advisers and researchers "discounting" the terms and conditions of benefits of a company's products.
"Research and scoring is based on the policy terms and conditions. The research also assumes that claims will be dealt with fairly and promptly according to those terms and conditions," the letter says.
"As researchers, if we can't assume this procedural fairness and adherence to contract law, what real commitments can we obtain so that products can continue to be assessed on the policy terms and conditions?" the letter asks.
"Motherhood statements are not what is required here but a real commitment to rise above the current situation in a thorough and professional manner to ensure that client expectations are met."
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