A CommInsure review into historically declined life insurance claims notes that it did not identify any systemic issues that could lead to poor customer outcomes.
The CommInsure-commissioned Deloitte review said it reviewed 797 declined claims between 1 May 2011 and 30 April 2016, and referred 41 of those claims to CommInsure for reassessment of its initial decision to decline the claim.
Out of those claims, eight had a customer financial impact, while in 10 claims, following CommInsure’s reassessment of the claim, the decision to decline was appropriate and the customer was not impacted.
In 12 claims, the decision to decline the claim was appropriate but there was a poor experience for the customer in how their claim was managed, while the remaining 11 claims remain in the reassessment process, the review said.
The review also said it “did not identify any evidence that the current and planned improvements to the claims handling processes are designed in a way that could systematically deliver poor customer outcomes, either financially because a claim is incorrectly denied or through a poor customer experience in how a claim is managed”.
CBA group executive of wealth management Annabel Spring said the review, as well as the reviews last year by DLA Piper and EY, reaffirmed CBA’s confidence in the business and its people.
“We are committed to doing the right thing for our customers and take concerns raised about our business seriously,” Ms Spring said.
“We have taken a robust, independent and wide-ranging approach.
“After assessing all of the work that has been completed, including the independent expert reviews, there is nothing to support the concerns of wilful or widespread misconduct.”
The big four bank has estimated it will be paying around $8 million to around 8,...
FASEA has conceded that its code of ethics is difficult for compliance managers ...
The majority of claims made under retail life insurance policies are now able to...