ASIC has released Life insurance claims: An industry review ASIC Report 498 which has significant implications for whole insurance industry and should be considered carefully to ensure ASIC’s concerns are properly addressed.
Despite the high life insurance average claims payment statistics, ASIC makes significant proposals for change that need to be considered and questioned further by industry.
One of the most significant is ASIC’s broad proposal to have the claims handling exemption under the Corporations Act removed so claims services are captured by Chapter 7 requirements. It also proposes that more significant penalties for misconduct in relation to insurance claims handling be included in the review of ASIC’s penalty powers.
For a summary of the Report’s key findings with initial commentary email us a request at [email protected].