New research from a Synchron-licensed firm has found a major bugbear for most policyholders is the long delays in the claims process from life insurers.
The research from Insurance Watch found that the biggest number of complaints related to the treatment of claims, and that unsurprisingly there were some scathing reviews from those whose claims had been declined.
Based on the hundreds of reviews left on its website over the last 12 months, consumers want more communication, innovation and faster payment of claims from their insurers.
However, it also noted other reviewers with successful claims who were critical of long payment delays and the volume of documentation required by insurers.
Other complaints cited on the website included large premium increases, long waits on the phone, not being called back and being bounced from consultant to consultant.
Insurance Watch managing director Wally Ripper said the Hayne royal commission emphasised the need for life insurance companies to meet community standards and expectations, and that insurers would therefore do well to listen to this feedback about their claims processes.
“The reviews reveal that if a consumer receives poor customer service from an insurer, they are likely to assume they will also have a poor claims experience,” Mr Ripper said.
“The message for insurers is that they shouldn’t take policyholders for granted.
“Today’s consumers expect more than just a renewal notice each year. And at claim time they want fair and fast payment.”
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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