riskinfo

The debate over the standardisation of key trauma definitions is set to raise its profile.

In next week’s ‘Mastering the Pipeline’ risk store Conference, key UK industry spokesperson, Nick Kirwan, will be raising this question with pre-Conference delegates and discussing the UK experience.

Is there a ‘correct’ answer as to whether key trauma definitions should be standardised? Perhaps the question should be considered from the perspective of what will ultimately best advance the trauma insurance interests of Australians in the longer term.

A key driver in the UK experience, where more than 20 key trauma events now have a standard definition, has been the previous adverse media attention paid to unsuccessful claimants, where the ‘unfeeling’ insurer was portrayed as being unfair in its decision to deny the claim.

In progressing to a complete standardisation of key trauma definitions in the UK, the question of whether a trauma benefit should be paid now becomes one that is mostly answered by the appropriate medical professional’s interpretation of whether the claimant’s condition meets the requirements of the industry standard definition.

In Australia, there are positive and negative outcomes that may stem from the implementation of standard trauma definitions:

Positive Outcomes

• Adviser confidence in knowing that a client would no longer experience the possibility of not being paid a benefit under their own policy, but may have been, or would have been, under another
• Client confidence for the same reason
• Safety net for challenges to an adverse claims decision
• Potential for increased trauma insurance sales

Negative Outcomes

• A substantial limit on product innovation. leading to:
• A commoditisation of trauma insurance products
• Danger of price becoming the only competing factor

What is the adviser view? Do you believe there is a case for standardising key definitions in trauma products available in the Australian market?

Next week, we will summarise how you have voted and also report in more detail on the issues raised in the risk store pre Conference presentation by Mr Kirwan.

Vote Now!