Give us more claims handling power: ASIC

The Australian Securities and Investments Commission has strongly reiterated its call for more power to deal with poor practices in life insurance claims handling.

Addressing Money Management's Life Insurance Claims Handling breakfast today, ASIC deputy chairman, Peter Kell said he believed there existed "excessive limitations" on the regulator's ability to take action under the so-called "absolute good faith provisions".

He also reiterated that removing the insurance claims handling exemption provisions within the Corporations Act would greatly assist ASIC in dealing with the industry.

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Kell noted that the Government has accepted ASIC's recommendations with respect to removing the exemption and it would now be part of a review of the Corporations Act.

 




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Kell has been crying poor for the past few years, now he wants more responsibilities? So what is is does ASIC have untapped resources, people sitting about saying hey I wouldnt mind investigating some insurance claims, or is it operating on the razor edge of poverty like Kell would have us believe? Need to check if they are eating home brand biccies or tim tams for morning tea this will tell us a bit about the finances.

For once, something I agree with ASIC about

Hold on. In a separate article yesterday Peter Kell said a recent review found that decline rate for Direct Life was 12-13%, while Retail Life (Adviser Channel) was 7-8%.

So to be clear, the adviser channel has a >50% LOWER decline rate than Direct.

Yet in 2014, ASIC had no issue trashing Life Insurance Advisers (i.e. Retail channel), in a report that *did not* compare their services the alternative Life distribution channels available to consumers (Direct and Group).

And now he asks for more powers to manage poor Life Claims practices? On what basis?

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