Australia’s best and worst performing insurers
Survey ranks how companies handle and process claims.
A new study into the claims performance of Australian insurance companies has uncovered the businesses which received the highest and lowest satisfaction ratings, according to financial advisers.
Adviser Rating's 2016 Adviser Sentiment Life Insurance Report identifies and ranks life, income protection, trauma, and disability (TPD) insurers based on the efficiency of their claims process.
Real Insurance (-45%) and CommInsure (-42%) received a substantial number of negative scores, furnishing them the moniker of poorest-performing insurers.
St Andrew's Life (-10%), MetLife (-9%), Allianz (-9%) and Clearview (-5%) also ranked below par.
Australia's best-performing insurer was Asteron Life. More than a quarter (27%) of Aussie advisers were satisfied with the way they handled claims, giving the company the highest ranking among its peers.
AIA (24%) wasn't far behind, followed by TAL Life (23%), Zurich Australia (23%) and One Path (22%).
"The perspective of financial advisers is a valuable consideration when determining the best life insurance policies, as these professionals are at the frontline of the claims process, acting on behalf of clients," Adviser Ratings managing director Angus Woods said.
The Australian Securities & Investments Commission's (ASIC) industry review of life insurance claims identified shortcomings in handling procedures and denial rates, particularly for TPD and trauma cover.
As well as this, underinsurance is still plaguing Australians, particularly working families with children.
Submissions from Australia's leading superannuation bodies to a parliamentary inquiry into the life insurance industry found the level of disability cover and basic life insurance to be inadequate.
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Note: The credibility of the information may or may not be 100% accurate given that Adviser Ratings are 100% adviser based and they are commenting on direct product.
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