The lack of information on what occurs during a life insurance claim continues to cause stress for claimants and feeds into ongoing scepticism around life insurance, according to a claims specialist.
AFRM Claims Advocacy (ACA) Chief Executive, Bruno Muraca said recently conducted research carried out by ACA and students at the University of Melbourne found the expectations of people making a life insurance claim were not being well met by insurers.
As such, claimants were seeking assistance in making claims, and information and education around the claims process as it related to them.
The research, carried out by Master’s students at the University with 100 people – including claimants, doctors and advisers, found that providing education around the life insurance claims process could result in better customer experiences, and that claimants valued an advocacy service to support them, and provide information, during the process.
“Generally, the level of education and understanding of life insurance is low but there is an expectation that if someone makes a claim they will receive a benefit,” Muraca said.
“Insurers are well intentioned and they pay legitimate claims…
“The experience of claims, however, is measured by the process of the claim and we found that expectations were not managed well up-front and so the experience for many people is sub-optimal,” he added.
Muraca said not knowing what would take place during the claims process was the key concern for many people, ahead of receiving a benefit – which many considered to be a given, with the research finding the support of claimants through the process, administration, and overall understanding of the claim process was top of mind.
The research also found that claimants preferred websites over an app to provide information and would welcome interactive web chats or peer to peer forums to share information and experiences.
“Insurers are well intentioned and they pay legitimate claims but claimants continue to be of sceptical,” Muraca said.
“Increasing the awareness and education around the importance and value of insurance and providing claimants a helping hand during the process seems to be more important than ever,” he said.
Call me sceptical but I’m not so convinced that that is actually the case. In my experience Life Co’s do very well at keeping claimants informed of, and throughout the claims process and are readily available to answer questions and provide support at claim time. Customers also have us to guide them through the process and advocate on their behalf.
Improvements in clarity and turnarounds mandated by the Life Code of practice will only serve to underline this. It’s the misinformation of the mainstream media, and ‘consumer’ groups (or certain individuals with personal vendetta’s therein) that seek to undermine the services provided. Let’s not forget that several independent and regulator reviews into CommInsure and the wider industry have failed to substantiate any wrong doing on the part of Life Co’s.
I agree John. Over the course of 20 years as an adviser, I have assisted a number of clients with claims and have found the communication by insurers throughout the process to both adviser and the insured to be very good. I wonder if the survey conducted as stated in the article, included claims made with direct insurers? if that is the case, then future surveys could be split between claimants who use an adviser and those who have claimed through a direct carrier! I would love to see those results.
Indeed Warren B – The Roy Morgan survey results at the start of the year also highlighted (or rather – failed to) this disconnect between adviser supported claims experience versus direct claimant experience. ACA appears to be targeting trustees so I guess any study supporting that difference in end customer experience will serve to support their offering.
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