Claims transparency needed
The life insurance claims process needs to be more transparent to reinforce the value proposition of the advice given by advisers, BT Financial Group believes.
The firm's head of life insurance, Phil Hay, said it was critically important to promote the value of life insurance as a response to underinsurance across the Australian market place.
"We've got to build consumer confidence and the greatest way to do that is being more transparent," Hay said.
Hay noted that customers often thought the claims stage was confrontational, were often sceptical, and had the perception that it was hard to deal with the insurer.
"If you take the work that an adviser does with the client and they look at the interest in the client, the real value from an insurance policy comes to what benefits are going to come to you in the worst case scenario.
"The more we can reinforce that and the more transparent we can be about what will occur at a claims stage, then the more people will understand the value they're buying."
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