Strong Call for Insurers to Release More Claims Information

Advisers have given the strongest possible message to insurance companies that access to more claims information will add value to their business and their client relationships.

In the most one-sided riskinfo poll to date, an overwhelming proportion of advisers have sent their message to the life companies, with 93% voting ‘Yes’ to the question:

“Should the Life Companies Release More Claims Information to Assist the Adviser Engage With Their Client?”

This poll comes in the wake of the risk store’s 1 July release of its 2008 Industry Claims Report, where it revealed more than $3 billion was paid to Australians in 2008 as a result of claims on retail life insurance policies.

…typical adviser feedback suggests claims information can be used to overcome cynical client attitudes…

Sue Laing, risk store MD, was not surprised at the outcome of the poll, saying she has received very positive adviser messages since she commenced reporting annual claims data in 2006.  Ms Laing told riskinfo that typical adviser feedback suggests claims information can be used to overcome cynical client attitudes to ensure the sale is made.

One comment from this poll is a suggestion that the provision of very detailed claims information would be of value to the adviser:

“Statistics on the total of claims paid by all companies (combined) mean nothing. … Give us actual claims paid – details on a personal, specific level – all facts except the name of the client.”

Other adviser comments re-affirm that some insurers do (or did) provide some claims data, which has proved to be of great value in securing insurance business.

A further benefit of the insurers releasing claims details to advisers is the opportunity to improve the relationship between adviser and claims manager by being able to discuss the nature of some of the claims.  This can in turn lead to better understanding of an insurer’s claims processes and decision-making.

As we said in our poll story last week, claims information, from the point of view of the insurance companies, can be market sensitive and historically the companies have generally been reluctant to share any more data than required by statutory authorities.

But perhaps the time has arrived where more open-ness in this area will in fact create a win/win/win outcome, with more advisers writing more insurance business, contributing to more Australians taking out much-needed insurance cover, and providing insurers with higher levels of new and in force books of business.

Those who have yet to vote and/or make a comment (including anyone from within the life companies) can do so now: