Ignored customers killing life insurers
The way the life insurance industry pays claims is what is bringing down the sector, Col Fullagar believes.
Speaking at a panel discussion at Money Management's Annual Risk Policy Awards breakfast today, Integrity Resolutions' claims resolution specialist principal, Col Fullagar, said the industry was not lauded as brilliant because of how it paid claims.
"It's really high tech things like if a question is asked they want an answer, do they get that? Not at all. They get ignored and that's the stuff that's killing the industry," he said.
"The jobs of the claims assessor may be tough but it's also privileged because it's one of the few occupations that can make a fundamental difference in people's lives."
Fullagar also criticised the life insurance's code of practice's "appropriately qualified" requirement.
"Appropriately qualified has to be degree-qualified. They are playing with people's lives. They get it wrong and people can die," he said.
"They have to be degree qualified, there has to be CPD points. They have to be remunerated accordingly. Let's up the ante in claims."
Commenting on the claims issues of underwriting, re-underwriting and clawbacks, Fullagar said: "Why does the industry have the reputation it has? It has earned it dare I suggest. It has to be fixed and needs something aggressive to make it happen".
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