CommInsure has released an extensive package of product and service enhancements to its CommInsure Protection insurance range.
The release of these initiatives marks the insurer’s return to active engagement with the life insurance market, ending a period of self-imposed restraint following the fall-out from the Fairfax/ABC media reports on claims-related issues at CommInsure earlier in the year.
A new combined Product Disclosure Statement and policy document effective from 13 November delivers a raft of product enhancements, which include updated definitions, new benefit options and other features improvements. These include:
- Over 20 new or updated trauma definitions. Most of the definition changes have been initiated to provide greater clarity, while the new elements include:
- New (partial) benefit for benign brain tumour of limited extent
- New meningococcal disease (full) benefit – designed to cater to meningococcal septicaemia or meningitis
- New full benefit for occupationally acquired hepatitis B or C
- New partial benefit for Parkinson’s disease within Trauma Plus cover to cater for simple diagnosis of Parkinson’s disease
- CommInsure has also introduced a new definition for secondary primary cancer as well as new partial definitions for severe Crohn’s disease and severe ulcerative colitis within the Trauma Plus cover option
- Introduction of split income protection cover across two policies inside and outside of superannuation, allowing for the majority of the premium to be paid from within the super environment but still offering maximum extras coverage outside super
- Extended indemnity policy, which allows pre-disability income to be determined as the best 12 consecutive months income in the three years prior to disability
- Improved definition of agreed value cover, offering a more generous definition of pre-disability income
- New trauma buy back Plus option allowing clients to claim for more conditions after cover has been reinstated
- Enhanced terminal illness benefit, in line with changes to updated superannuation industry conditions of release
- Extended expiry of TPD contracts and changes various policy entry and expiry ages
Claims Services
Process reviews
CommInsure has re-stated the changes it has made to its claims processes following reviews stemming from the claims issues media reports in March. See:
- CommInsure Announces Product Updates, Other Changes (March 10 2016)
- CommInsure Names First Members of Claims Review Panel (April 18 2016)
- CommInsure Names External Experts for Review Programs (May 20 2016)
The basis of the claims process changes seeks to ensure that the more complex claims have what CommInsure refers to as an additional layer of consideration. This additional layer offers a review of the case by a complex claims committee, which will also forward the outcome to an independent review panel in circumstances where the complex claims committee, following its review, has recommended the claim be denied.
CommInsure points out this process is an industry first.
Tele-claims
CommInsure has instituted a new tele-claims service to reduce the time taken for a decision to be made. Once the claimant has been sent their claims forms for completion, the insurer says it as been able to reduce to an average of seven days the time it takes to make a decision on income protection claims that have passed some initial ‘triage’ questions.
Mental health claims
A new support program has been implemented by CommInsure for mental health claims in which the focus is gravitating towards helping claimants return wellness, rather than simply returning them to work.
The insurer says its rehabilitation team works with the claimant and their medical providers to establish a five-stage back-to-wellness life cycle (click here for more details).
Pricing changes – income protection
Accompanying the updated product range will be a 7.5% increase for new ordinary IP business (both stepped and level) from 13 November 2016. CommInsure notes existing IP ordinary policies with stepped premiums will also attract a 7.5% premium increase from February 2017.
Advisers can click here to access a 16-page document summarising these initiatives and other changes, as the insurer seeks to regain momentum with the adviser community and with the public.
…And click here to access CommInsure’s updated adviser guide.
