{"id":46810,"date":"2019-10-18T19:45:51","date_gmt":"2019-10-18T09:45:51","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=46810"},"modified":"2025-09-02T11:33:54","modified_gmt":"2025-09-02T01:33:54","slug":"fsc-fires-back-at-asics-tpd-insurance-criticisms-with-new-data","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/10\/18\/fsc-fires-back-at-asics-tpd-insurance-criticisms-with-new-data\/","title":{"rendered":"FSC Fires Back at ASIC\u2019s TPD Insurance Criticisms"},"content":{"rendered":"

The Financial Services Council has called out ASIC\u2019s reliance on data from 2016\/17, used in the regulator\u2019s recently released report that found \u2018significant industry-wide problems\u2019 with the design of total and permanent disability insurance and the claims handling process.<\/span><\/p>\n

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FSC CEO, Sally Loane …the industry has initiated significant positive reforms<\/figcaption><\/figure>\n

ASIC called on insurers and trustees to take action to improve consumer outcomes from TPD insurance, stating the issues it uncovered mean many consumers can\u2019t rely on this cover when they need it most.<\/p>\n

\u201cOver 12 million Australian workers automatically pay for TPD cover through their superannuation to provide financial protection when they are so sick or injured that they can never work again. ASIC expects industry to make prompt changes to ensure this cover provides real value,\u201d the regulator stated in its release presenting the report, \u2018Holes in the safety net: A review of TPD insurance claims<\/a>\u2019.<\/span><\/p>\n

The FSC responded with an analysis using more recent 2018 data on TPD claims in life insurance.<\/span><\/p>\n

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ASIC Commissioner, Sean Hughes …insurers need to take action to improve consumer outcomes from TPD insurance<\/figcaption><\/figure>\n

FSC CEO, Sally Loane<\/strong>, says ASIC\u2019s report fails to highlight the significant positive reforms the industry has initiated since then, including the introduction of the Life Insurance Code of Practice and the world-class FSC\/KPMG claims data initiative.<\/p>\n

\u201cThe 2018 data tells a very different story…”<\/span><\/h6>\n

\u201cThe 2018 data tells a very different story and ASIC\u2019s report serves to highlight the substantial progress the life insurance industry has made in the last couple of years,\u201d said Loane. <\/span><\/p>\n

\u201cKPMG on behalf of the FSC collect TPD claims data every six months and we know this data collection initiative is unsurpassed anywhere else in the world, both for its granularity and timeliness.\u201d<\/span><\/p>\n

According to ASIC\u2019s review: <\/span><\/p>\n