Category | Claims

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Royal Commission Does Not Understand Risk Advice – AFA

The AFA has claimed the Financial Services Royal Commission has not fully understood the nature of financial advice, nor the role of commissions in the remuneration of adviser, and will push to improve the latter’s view of these issues. (more…)

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2 · October 2, 2018 in Associations, Claims, Compliance & Regulation, Products, Remuneration, Services  
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Royal Commission Questions Ongoing Use of Life Insurance Commissions

The Banking Royal Commission has questioned why life insurance commissions should remain as a carve-out to the conflicted remuneration provisions of the Corporations Act and why they should not continue to be reduced to zero. (more…)

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13 · September 26, 2018 in Claims, Compliance & Regulation, Products, Remuneration, Services  
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Insurers Report Code Breaches But No Sanctions

The body tasked with enforcing the FSC’s Life Insurance Code of Practice (LICP) made no sanctions against any life insurer in its first year, despite being aware of 25 breaches of the Code and receiving more than 700 breach allegation referrals. (more…)

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0 · September 25, 2018 in Associations, Claims, Compliance & Regulation, Products, Services  
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Major Insurers Lacked Definition Review Processes

Most major life insurers did not have formal and regular processes to review medical definitions until at least 2016 with four insurers only introducing the processes last year, according to evidence presented to the Banking Royal Commission. (more…)

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2 · September 18, 2018 in Claims, Company News, Products  

Insurer Conduct In Commission Crosshairs

The Financial Services Royal Commission has concluded the first week of hearings into the life insurance sector, repeatedly questioning whether the actions of insurers could be considered as misconduct under law or ‘falling below community standards and expectations’. (more…)

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1 · September 17, 2018 in Claims, Company News, Compliance & Regulation, Products, Services  
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Commission Details Potential Life Insurer Misconduct

Major insurers offering products into the retail advised life insurance market have presented a lengthy list of possible misconduct to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. (more…)

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2 · September 11, 2018 in Claims, Company News, Compliance & Regulation, Products, Remuneration, Services  
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Questions Raised Over Gap in Claims Regulations

The inconsistencies in the treatment of life insurance products under law has been raised by the Royal Commission which questioned why ASIC did not have full oversight over their distribution and application during claims. (more…)

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1 · September 11, 2018 in Claims, Compliance & Regulation, Products  
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Royal Commission Will Not Examine Life Insurance Advice

Financial advice related to life insurance will not be examined during the current round of hearings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. (more…)

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1 · September 10, 2018 in Claims, Compliance & Regulation, Products, Remuneration, Services, Superannuation  

AMP Updates Medical Definitions After Review

AMP has updated three medical definitions related to cancer, Parkinson’s disease and cardiac arrest following an annual review of all definitions for products on-sale and off-sale. As a result of this review, the updated definitions, which are effective from the 3 September 2018 make the following changes: Cancer – removed the AIDs exclusion and Kaposi’s […]

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0 · September 4, 2018 in Claims, Products  
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ASIC Raises Concerns Over Lapses, Claims in Direct Insurance Market

ASIC has expressed concerns over the high cancellation rates of direct life insurance, as well as the lower levels of accepted claims, prompting it to move to end outbound sales calls and pressure selling by insurers. (more…)

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12 · August 30, 2018 in Claims, Compliance & Regulation, Products