Regulatory data confirms advised life/risk is better
New data has confirmed that people who use an adviser to obtain life/risk insurance are generally better off at claim time.
The data, released by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) confirmed that between 1 January and 30 June, last year, those who obtained life/risk cover via the individual advised channel were better off at claim time with respect to death, total and permanent disability, trauma and disability cover.
The data, collected as part of the joint APRA/ASIC pilot project around life claims data, also confirmed that 90 per cent of all claims were paid in the first instance, with 97 per cent of death claims being paid, 84 per cent for TPD and 87 per cent for trauma.
However, the data was more revealing with respect to advised insurance, where 98 per cent of death claims were paid compared to 88 per cent in the non-advised channel, and 86 per cent of TPD claims were paid compared to 67 per cent in the non-advised channel.
The data was also very stark with respect to disability insurance, with the advised channel delivering 95 per cent of claims being paid, compared to 83 per cent in the non-advised channel.
Both APRA and ASIC said they were moving to establish an ongoing reporting regime of the claims data with regular publication of credible, reliable and comparable data at both aggregated industry and insurer-specific levels.
Table 2: Claims admittance rate by cover type and distribution channel - second pilot round (1 January 2017 to 30 June 2017)
|
Cover / Product Type |
All |
Individual advised |
Individual non-advised |
Group |
|
Death |
97% |
98% |
88% |
98% |
|
TPD |
84% |
86% |
67% |
84% |
|
Trauma |
87% |
87% |
84% |
* |
|
DII |
95% |
95% |
83% |
96% |
|
CCI death |
92% |
92% |
* |
|
|
Funeral |
99% |
99% |
||
* Small volumes of claims reported, but masked for reasons of confidentiality
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