riskinfo

On the heels of our most recent poll where advisers showed strong support for the standardisation of key trauma definitions, riskinfo is now asking advisers whether they support the notion of a single, standard occupation list across all insurance companies.

Insurers have previously suggested to riskinfo that a standard occupation list across the industry will mean that individual companies will lose the competitive advantages they may enjoy in particular segments such as mining occupations or broader blue or white collar specialist categories.

However, the upside for a standard occupation list will mean an end to confusion for advisers where a client regarded as having a particular occupation by one insurer may actually be classed differently by another.

While there will be ‘devil in the detail’ of this issue, if insurers were able to agree on one set of occupations and occupation categories, the overall benefit to advisers, their clients and greater efficiencies across all adviser and insurance company systems, may well outweigh the negatives.

In terms of ‘competitive advantage’, insurers would still be able to determine their own loadings and discounts and which occupations under income protection cover, for example, would have access to which benefit periods.

An industry group comprising representatives from each insurance company, adviser representative groups and other interested parties would create and then regularly maintain the standard occupation list and categories in an initiative that would end the tedious burden of an adviser working with as many different occupation lists as there are insurance product ranges.

The list could be based on the most up to date data available, eg, through the Australian Institute of Actuaries and IFSA, although individual companies’ own claims experience for certain occupations may be at variance from overall statistics.

However, advisers may prefer the fact that variety currently exists, and the flexibility it may provide some of their clients.

So, have your say.  Make your voice heard!  Do you support the idea of a standard occupation list for the life insurance industry?

Vote now!