Strong Support for Documented Claims Philosophy – Poll

The results of our latest poll appear to reinforce the evolving nature of life insurance advice in Australia – particularly when it comes to claims handling.

As we go to press, a significant majority of seven in ten advisers (71%) agree that all advice practices should possess a documented claims philosophy.

This result seems to validate the proposition that the industry has progressed a long way from the days when advisers assisted their clients through the claims process in what was just a part of their normal routine, but was devoid of any formal or documented processes or any commercial component attaching to the service.

We suggest this maturing or evolution in claims advice and claims services is borne of two main factors:

1. The cost to serve
2. Risk commission caps

Each factor in isolation has driven behavioural change among advisers and advice businesses across the country. When combined, however, they have delivered a double-whammy imperative for the advice sector to assess every element of its service proposition. When it comes to managing life insurance claims, the sector has seen the resulting emergence of outsourced firms offering specialist claims services, together with many advice practices developing and documenting specific processes and procedures that inform the way in which they serve their clients at claim time.

…a more structured and professional approach taken by advisers and advice businesses towards claims advice services

So, the apparent acceptance from the majority of Riskinfo readers that all financial advice practices should have a documented claims philosophy seems to reflect this natural progression accompanying what appears to be a more structured and professional approach taken by advisers and advice businesses towards claims advice services – irrespective of whether this involves the advice practice itself doing the often hard yards in managing the claim or whether the process is outsourced to the emerging specialist firms offering this service.

Our poll remains open for another week, where we welcome your further thoughts – and where you’re under no obligation to agree with our assessment of this outcome…