Adviser Ratings releases insurer survey
Adviser Ratings has released a survey to financial advisers to gauge who they think are the best and worst insurers to deal with in relation to handling claims policies for their clients.
The distribution of the survey follows the release of a review into life insurance claims by the Australian Securities and Investments Commission (ASIC) last week, which found that while around 90 per cent of claims were paid in the first instance, total and permanent disability cover had the highest rates of declined claims (16 per cent), while trauma cover had a decline claim rate of 14 per cent.
The Adviser Ratings' survey asks advisers to select three insurers they think are best or better at handling and approving life insurance claims, those that are poorest in this area, those that the best and poorest at handling TPD claims, income protection, and trauma cover.
It also asks advisers which insurers appear on their approved products list, with options including AIA Australia, Allianz, AMP Life, Asteron Life, OnePath, MLC, and TAL, among others.
In a blog, consumer and adviser services director, Rodney Lester, wrote that lowering commissions for advisers would increase insurer profit, and said it was vital to lower premiums along with reducing commissions, enhanced claims handling service, investment in product and rehabilitation innovation, and improvements to policy maintenance and service.
"This in turn will make it easier for advisers to recommend good insurers and hopefully increase volume of life insurance sales in the industry," Lester said.
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