ASIC and APRA will begin collecting life insurance claims data under a pilot scheme that will require insurers to provide their first batch of data by the end of the financial year.
The pilot scheme will run through to mid-2018 with each regulator set to collect three rounds of data during that time. The data will be used to refine the collection process, and by insurers to create and align their data collection procedures.
In announcing the start of the pilot scheme APRA stated life insurers were requested to complete the first data reporting template by 30 June and that data would be accepted on a ‘best endeavours’ basis “…recognising that insurers may need time to adjust their systems to enable them to capture and provide reliable data”.
“Transparency will assist with accountability and drive improved performance in the sector…”
The pilot is the result of the findings of ASIC Report 498 Life insurance claims: An industry review. The report highlighted the need for more consistent and transparent data around insurance claims.
APRA Member, Geoff Summerhayes said the pilot would establish a consistent public reporting regime for claims data and claims outcomes and would be collected on an insurer-level basis to create credible, reliable and comparable data.
“Such information will enable consumers to better understand insurance products and more confidently engage with insurers. Transparency will assist with accountability and drive improved performance in the sector, which should ultimately improve trust and confidence,” Summerhayes said.
“This is a significant and broad initiative and while there is some way to go before the data is sufficiently robust for publication, the pilot collection is an important first step,” he added.