{"id":60476,"date":"2022-04-19T16:05:50","date_gmt":"2022-04-19T05:05:50","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=60476"},"modified":"2025-09-02T11:33:51","modified_gmt":"2025-09-02T01:33:51","slug":"dii-drives-rising-dispute-lodgement-ratios-for-individual-advised-business","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/04\/19\/dii-drives-rising-dispute-lodgement-ratios-for-individual-advised-business\/","title":{"rendered":"DII Drives Rising Dispute Numbers for Individual Advice"},"content":{"rendered":"

The dispute lodgement ratios for all distribution channels have remained relatively stable over the past three and a half years except for Individual Advised business, according to APRA\u2019s Life Insurance Claims and Disputes Statistics<\/em> report to December 2021.<\/p>\n

The report says the hike was mainly driven by DII \u201c\u2026given the various repricing activities undertaken to address the product sustainability issues.\u201d<\/p>\n

\"\"<\/a>
Dispute lodgement ratios by channels, for year ended June 2018 to December 2021. Source: APRA\u2019s Life Insurance Claims and Disputes Statistics December 2021 report<\/figcaption><\/figure>\n

Analysing dispute lodgement ratios by cover types during this period reveals the disputes lodgement ratios for DII have increased considerably.<\/p>\n

…In general, more complex products are likely to have higher dispute lodgement ratios,<\/p><\/blockquote>\n

\u201cIn general, more complex products are likely to have higher dispute lodgement ratios,\u201d the report says, while also noting that, while DII shows higher ratios than TPD and Trauma, it also has a higher claims frequency.<\/p>\n

\"\"<\/a>
Dispute lodgement ratios by cover types, for year ended June 2018 to December 2021. Source: APRA\u2019s Life Insurance Claims and Disputes Statistics December 2021 report<\/figcaption><\/figure>\n

Meanwhile, when reviewing the claims admittance rate by cover type and distribution channels the statistics show that generally, Individual Advised business shows higher admittance rates than Individual Non-Advised for the same cover type (also see: Life Insurance Claims Data Continues to Show Value of Advice<\/a>).<\/p>\n

The report says this could be due to the policyholder \u201c\u2026having clearer expectations up front of what is covered by the product, or (related to the previous point) the adviser discouraging the policyholder from lodging a claim that is not covered by the policy.\u201d<\/p>\n

APRA says the exception is Accident which has the same admittance rate between two channels. However, it notes the number of observations is quite small (11 finalised claims, versus 2,405 for Non-Advised).<\/p>\n

\"\"<\/a>
Claims admittance rate by cover type and distribution channel. Source: APRA\u2019s Life Insurance Claims and Disputes Statistics December 2021 report<\/figcaption><\/figure>\n

Click here<\/a> to access APRA’s Life Insurance Claims and Disputes Statistics December 2021 report.<\/p>\n","protected":false},"excerpt":{"rendered":"

The dispute lodgement ratios for all distribution channels have remained relatively stable over the past three and a half years except for Individual Advised business, according to APRA\u2019s Life Insurance Claims and Disputes Statistics report to December 2021. The report says the hike was mainly driven by DII \u201c\u2026given the various repricing activities undertaken to […]<\/p>\n","protected":false},"author":24,"featured_media":60486,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8294,8,4],"tags":[],"class_list":{"0":"post-60476","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-claims","8":"category-compliance-regulation","9":"category-products"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=60476"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60476\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/60486"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=60476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=60476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=60476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}