Commonwealth Bank (CBA) has announced that the Board of its insurance arm, CommInsure, has approved ‘…a range of measures to upgrade its product offering and provide further assurances.’
This announcement, which outlines product updates and structural changes within the insurer’s claims division, comes in the wake of serious allegations made against the CommInsure business in recent Fairfax and ABC media reports in relation to a spate of disputed insurance claims (see: CommInsure Allegations…).
Product changes
Product changes/initiatives include:
- Accelerating the planned upgrade of the heart attack and severe rheumatoid arthritis definitions in CommInsure’s Trauma product
- Releasing the upgrade in a product disclosure statement by the end of March, noting coverage will be backdated and apply for all claim events from May 2014 onwards, which was the date of the last relevant product disclosure statement for the Trauma product
- Commitment to a more regular review of the life insurance offering to ensure definitions reflect evolving medical standards and practices
Claims process changes
CommInsure has announced it will introduce an additional layer of independence and assurance to its claim assessment and decision-making processes. It says where its claims committee recommends a complex claim be declined, it will be referred to an Independent Review Panel, which will comprise the Managing Director of CommInsure and at least two independent industry experts, who will be announced within the next month. A sub-committee of the CommInsure Board will monitor the outcomes of the Panel.
Other claims related actions
Assertions made in the media that CommInsure was not responsive to internal concerns raised are incorrect
The CommInsure Board says it will appoint an independent expert to oversee a claim review program focused on declined claims, with particular emphasis on customer advocacy. The independent expert will also be specifically asked to form a view on whether the circumstances surrounding the review of any particular claim warrants further action from the CommInsure Board.
Other statements in the release announcing these initiatives include a note from CBA that ethical concerns that have been aired in recent media reports will be independently investigated, and that ‘Assertions made in the media that CommInsure was not responsive to internal concerns raised are incorrect.”
CommInsure Board Chair, Geoff Austin apologised on behalf of CommInsure to the affected customers. He said the CommInsure Board has met and reviewed current initiatives and agreed to immediately take additional steps to reassure customers of the company’s values and commitment to their customers.
Echoing earlier comments made by CBA CEO, Ian Narev, Austin said “We expect the highest ethical standards of all our employees and will continue to ensure that the policies and processes within the business support these standards.”
The damange CommInsure have done to the entire industry is unforgivable
I wonder are there any plans to upgrade ( more like update) their wording on their indemnity income protection policies It now reads as an Average of income over the preceding 12 months Almost the whole industry bar a handful will take the best income in the previous 3 years !!! This can make a huge difference at claim time if you are perhaps a tradie that has been having a “rough trot” I have mentioned it time and time again and I get no response This so called review needs to go far further than just heart attack upgrades on their trauma cover
They are draconian at best and it disappoints me to see what was a great ethical company and a pleasure to support go to a money grabbing associate of yet another mercanary bank
As an adviser who has recommended a lot of Comminsure policies, we have received absolutely no correspondence from them since this occurred – and they knew last week it was going to air. And after a week, this is what they release? The allegations in the Tony Grieg case are simply wrong (from the information I have) but they have been absolutely silent while I am inundated with client calls, e-mails and texts! They are not helping the situation by going missing in action.
Saw the 4 corners piece. Damning really. Thanks so much Comminsure for allowing the usual anti-financial services crowd enough ammo to tar everyone with the same messy brush and even demand a Royal Commission- just when Life Insurance changes are about to be reviewed. It will be a brave (and possibly reckless) adviser who recommends a Comminsure policy in the next year or so.
Too Little Too Late; and only have done so because they have been caught red-handed. They are a blight on our industry. I wonder if the FSC have the guts to throw them out of their association??
I think it’s a media beat up, but that’s why sells copy. The story gave only the “sensational” claims and was not balanced. I gave advice to a client yesterday afternoon on an Essential IP policy and I was asked about the story by the client (and gave him my opinion). Don’t worry, I’m sure if they can get some disgruntled (add insurer name) clients, they’ll trot out a story about their Claims soon…
But it will mean other insurers will be reviewing their own practices, so they are less likely to be caught in the same way.
A beat up!!! Were we watching the same program? That which I watched detailed a systemic and entrenched appalling culture. I trust there is no-one in your family with a CommInsure policy.
If you read the previous article:
https://riskinfo.com.au/news/2016/03/08/comminsure-allegations-may-lead-to-industry-wide-review/
in particular some of the final comments:
Allegations concerning CommInsure made by Fairfax Media and the ABC’s Four Corners program:
* Denial of a trauma claim by maintaining what has been stated as an outdated definition of what constitutes a heart attack
* Denial of a terminal illness claim where organ transplant could have been an option (subsequently settled)
* Refusal to pay a terminal illness claim, notwithstanding the prognosis of three specialists (A possible settlement is pending)
* TPD claims denied to two former Commonwealth Bank (CBA) group employees who left the group after being considered too ill to work by CBA (One of these claims has been settled and a possible settlement is pending for the other)
I hardly think that an extremely small sample of (denied) claims is indicative of their claims process as a whole.
Perception = reality and you’re entitled to your opinion Wendy, as I am to mine. We may not agree with one another, but that is democracy in action.
No, my family hold cover with a major Australian insurer and we trust in their claims processes, given we have had 112 years of combined experience with that insurer.
Totally disgusted and dismayed by the latest allegations. As if CBA has not done enough damage to this industry already and now this. CBA/CommInsure you are nothing but a blight on this industry and I hope a Royal Commission does prevail. You have no intention of doing the right thing until you are caught out. No ethics, no integrity and the irrepairable damage you have done is unforgiveable. As an adviser what do you suggest we say to our clients who are questioning the value of their policies? And Mr Narev since you admit that CommInsure did not do the right thing are you going to pay James Kessel his $1m like you should have in utmost good faith in the first place or let him sweat it out with the lawyers?? Your entire organisation makes me sick. Here we are trying to sell “peace of mind” to our clients and your fat greedy board makes this decision. You all deserve to be lobotomised. And Mr Whiteley hang your head in shame with your cheap shot at commissions. It has NOTHING to do with this. End of rant. Sigh…
what does comminsure believe is a “high ethical standard”? Is that by their standards? Because with all due respects comminsure you appear to have no ethical standards whatsoever!
Shame on you CommInsure and the CBA. Like the doctor said, explaining ethics to you people is like describing a colour to a blind person. The changes are because you were exposed, not because you care! The least you could do is resign.
Pay James Kessell now you heartless executives watching your profits and performance bonuses balloon. May he have quality time with his loved ones instead of spending his days in battle with CommInsure.
Will advisers who now justifiably move their clients away from Comminsure as a result of the Four Corners Revelations be accused of “churning” and not acting in their clients best interests?
Of course. Only if we we charged them a $2-$3k “fee” would it not be churn. I’ve put extra staff on as am expecting a large line-up at my office the next few days to pay my fee for their insurance advice. Perhaps we should do it for free or just refer them to another industry fund so they can “offer” to take over all their cover. Then again Ian’s fixed everything now, so on what basis would you justify it?
The real question is, how p’d off will a client become as we try really hard NOT to move them because of how that may be perceived.
Always said CommInsure were dinosaurs when it came to policy wording – now we also know the Executives are Leeches when it comes to claims payments, taking money in bonuses whilst real people have not been paid their entitlements. How do your families feel about the good life you provide on this basis??
The only good thing CommInsure have is a true level premium imv.
Its a biggie – but is it enough to ignore the culture and why it may improve? I’m not sure.
Comments are closed.