March 22, 2016
The head of a research group has written to major life insurers requesting they detail how they are handling claims payments and seeking assurance the insurers are acting above current procedural and contractual obligations.
LifeRisk Partners, Managing Director, Stephen Dingjan released the letter publicly, stating it would go on the group’s website, along with any responses from insurers as part of efforts to restore confidence in the life insurance industry.
In the letter Dingjan states that advisers and the product research they use rely on scoring based on insurance policy terms and conditions and the assumption claims will be paid promptly under those terms and conditions.
He added that if researchers – LifeRisk Partners is part of LifeRisk Group which provides software and research to advisers and licensees – could not assume procedural fairness and adherence to contract law, what other measures would be made available so that products could be assessed on policy terms and conditions.
“It is now over to each insurer to provide the appropriate commitments perhaps including a Code of Practice, in excess of current procedural fairness and contractual requirements including perhaps making reparations to clients and their advisers (Lawyers, Claims Advocates etc) if they fail to adhere these new enhanced standards,” Dingjan said.
“We call on each insurer to reassure their clients, advisers and the researchers as soon as possible.”
“We call on each insurer to reassure their clients, advisers and the researchers as soon as possible. Motherhood statements are not what is required here but a real commitment to rise above the current situation in a thorough and professional manner to ensure that client expectations are met.”
He also stated that a failure to act was likely to result in advisers and researchers downplaying the validity of the terms and conditions of an insurer’s products based on their belief as to how well the insurer will actually follow their own policy terms and conditions.