Do advised clients get their claims paid more often?
Every year APRA release claims statistics on Australian life insurers claims data. These figures provide some interesting insights into the outcomes for direct life insurance customers (eg real insurance, NRMA life, NobleOak etc) and those customers who have taken out their insurance policies with an adviser.
APRA’s claims statistics and disputes report, which covered the 12 months to June 30 2021, showed that claims admittance rates across 20 insurers was 93%. This was significantly higher for those who had an adviser. For death claims,97% of claims were paid where an adviser was involved compared to 92% for those with no adviser (direct insurance).
In Total & Permanent Disability cover (TPD), 82% of advised claims were admitted during the 12 months compared to just 64% of non advised claims.
Income Protection also showed a significant difference with 95% of advised claims admitted vs 81% for non advised claims. Over 10,000 Income Protection claims were finalised in the 12 months to June 2021 with financial advisers vs 1,700 for non advised clients.
The APRA report highlights the need to seek advice when taking out what is a complex financial product.
If you currently have insurance in place which you would like reviewed or are interested in taking out a new insurance policy please get in touch with us today.
The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS.Contact us for a quote