ANZ has added its voice to calls for a consumer orientated claims assistance service while also highlighting that consumers are less likely to make a complaint when a financial adviser is involved in the claims process.
ANZ made the latter statement as part of its submission to the Parliamentary Joint Committee Inquiry into Life Insurance in which it stated there was an opportunity for the life insurance and superannuation sectors to have a greater role in assisting consumers during the claims process.
Repeating a call made by AIA Australia in its submission (see: AIA Australia Calls for Claims Service to Assist Consumers), ANZ said an independent, industry funded service could assist claimants, who may or may not have an adviser, through the entire claims process.
In making the call, ANZ emphasised the role of advisers and stated that even if a claims assistance service was in place “…customers who have retail insurance would be encouraged to continue to engage the services of their adviser when making a claim”.
“We experience significantly less complaints where a financial adviser is involved in the claims process”
The bank also wrote in its submission that an “…overwhelming majority of claimants with retail life insurance are supported by a financial adviser. We experience significantly less complaints where a financial adviser is involved in the claims process”.
While ANZ did highlight some of the problems associated with the sale of retail advised insurance, such as the quality of advice given and churning, it also stated that when retail insurance was sold through an adviser “…customers receive the benefit of professional financial advice to help inform their choices”.
In suggesting a claims assistance service ANZ also suggested that costs could be reduced by removing the presence of legal advice at time of lodging a claim and providing consumers with options if the event there was a dispute around a claim.
“To make the process as low cost as possible to consumers, we suggest that it would be unnecessary for claimants to retain legal advisers at the initial stage of making a claim,” ANZ stated
“Once an assessment is made, claimants should of course be free to take whatever steps are necessary should a claim be refused. Claimants are advised of internal and external dispute processes that are available at no cost.”
All good and well when advisers are involved but it is the low percentage of advisers getting involved in claims that is a concern. From our claims consulting work, it is only a very low percentage <10%. As for bank advisers, they are not allowed to be involved in the claims process – ironic coming from ANZ. A bank!
As an ex ANZ planner I was told by my chain of command not to get involved with a clients claim, what a bunch of hypocrites.
Always concerning when the Manufacturers want to fund something…all we will end up with is another Tail wagging the dog situation like the AFA (the Dog) and Platinum Sponsors (the Tail) wagging too much. Could it be that the Manufacturers don’t won’t experienced Advisers in the process?…Could it be that manufacturers find it more difficult to hood-wink professional Advisers with rubbish spewed out from call centre staff who have been trained for a few weeks and then in the job for 6 months? Just some cynical observations…
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