Claims handling breaches in Australia rose by 18% in the 2022-23 year to more than 9,000 according to the Life Insurance Code Compliance Committee.
Its Chair, Jan McClelland, says incidences of life insurers failing to promptly address claims “…not only breaches Code obligations, but also adds unnecessary stress for customers, undermining trust in the industry.”
She says insurers “…must prioritise meeting claims handling and communication timeframes to improve customer satisfaction and meet community expectations.”
The committee’s report (Annual Industry Data and Compliance) found that total breaches of Code obligations have increased for a third consecutive year.
The report shows more than 106,000 customers were affected by the breaches, up 9% on the previous year.
Read the full report with charts here.