Stats prove insurance industry pays up on claims
The insurance industry paid out 98 per cent of all claims during the 2007 financial year, according to new statistics released by the Insurance Ombudsman Service (IOS).
This represents a total 2,919,357 claims that were paid out of a total 2,980,349 claims that were made during the year, with only 60,992 claims or 2 per cent rejected.
The total of claims made during the year represented 10 per cent of a total 29,967,257 personal insurance policies that were issued during the year.
Industry ombudsman Sam Parrino said the statistics show that the insurance industry is “very much in the business of paying out on insurance claims”.
The motor insurance category rejected only 0.5 per cent of claims on motor insurance policies during the year, or 7,646 of a total 1,455,724 claims — the smallest number of rejected claims in the industry.
Consumer credit recorded the highest proportion of rejected claims during the year — 10 per cent of a total 18,945 claims.
Travel insurance recorded the second highest proportion of rejected claims, with 8.6 per cent of 169,329 claims made.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
