The results of an Australian Riskinfo poll asking if advisers were open to the possibility of outsourcing clients’ life insurance claims processes paints a very different picture to when advisers across the ditch were asked the same question a year ago.
The latest poll found that two in three advisers/colleagues (67%) agree they’re open to outsourcing their clients’ life insurance claims. Only one in five (22%) disagree, with the rest unsure.
Eleven months ago, a modest one in three (33%) Australian advisers were open to life insurance claims outsourcing, while the majority – 56% – were against.
While Riskinfo in Australia says it never claims any scientific rigour around its poll results, it’s nonetheless confident the outcome of this latest poll indicates a change in thinking has definitely taken place in the mind of a lot of Australian financial advisers and those who support them:
When Riskinfo asked this question in October last year, it outlined three arguments made by those in Australia supporting the outsourcing of client claims to external specialists:
- The ever-growing complexity associated with submitting a claim and achieving a successful outcome for the client, especially given the sometimes lack of expertise possessed by non-risk specialist advisers and generalist/holistic practices
- The prolonged delays associated with many claim submissions and the associated time and effort required of the adviser and support team members
- Mitigating any potential action brought by non-sector legal firms engaged by the client, where the advice business or dealer group may be subject to litigation over the role it played in a declined claim outcome
The Australian poll was motivated by a report last week on the time and efficiency successes experienced by specialist service firm TPD Claim Support (see: Upfront Due Diligence Re-Setting Claim Times).
Riskinfo suggests that perhaps the past eleven months has given more Australian advice practices pause for thought in considering the merits of outsourcing some, or all, of their clients’ life claims processes – possibly as part of a broader search for efficiencies within their businesses.
“For whatever reason, however, it would seem that outsourcing life insurance claims has become a more acceptable solution for more financial advice firms across Australia,” it says.