Standard definitions ‘not the best approach’, says NAB
NAB has come out against standardised medical definitions within life insurance policies, saying it discourages industry competition.
Speaking to the Parliamentary Joint Committee hearings into the life insurance industry last week, NAB executive general manager for wealth advice, Greg Miller, addressed concerns from Senator Deborah O’Neill that consumers want standard medical definitions as a means of certainty within their insurance cover.
“I’m not sure that would be the best approach, because if MLC Life sees the need to update a definition, why should they wait for the rest of the industry to update the definition,” Mr Miller told the inquiry.
Mr Miller noted that the incoming FSC Life Insurance Code of Practice states that medical definitions will be periodically updated.
He said there “should be nothing to stop an insurer jumping ahead of that”.
Senator John Williams also asked Mr Miller whether NAB’s advice division is back in order following the Graeme Cowper scandal.
Mr Miller echoed earlier comments to the inquiry by NAB chief customer officer for consumer banking and wealth management, Andrew Hagger, saying “we are proud but not perfect”.
“We have been working diligently for the last two years to make sure we continue to improve in what we do,” Mr Miller said.
“That’s not to say that some adviser won’t do something that we don’t like in the future, but we are doing everything possible to make sure we improve, and we’ve been improving our monitoring and supervision and compliance over the last two or three years.
“That’s important to us, and we will continue to improve.”
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