Forcing insurers to reveal rejected claims a win for consumers
- Written by Justin Malbon, Professor of Law, Monash University
Companies offering life insurance will now disclose the outcomes of claims, under a new reporting regime in a bid to increase transparency in the industry. This information won’t only be used by individual customers but also by financial advisers and in the case of many of us, by our superannuation fund, via a group policy.
If super funds consumers and financial planners use this data, it will likely place considerable pressure on insurers who have high rejection rates to improve internal practices, terms of insurance policies and better inform consumers about the scope of the insurance coverage. A history of high rejections would suggest that there is a relatively high risk the insurer would reject future claims. Awareness that an insurer has a high rate of rejections would lead to business being diverted away from them.
Authors: Justin Malbon, Professor of Law, Monash University
Read more http://theconversation.com/forcing-insurers-to-reveal-rejected-claims-a-win-for-consumers-66987