The Commonwealth Bank welcomes the Life insurance claims: An industry review report by the Australian Securities and Investments Commission and further discussion on expectations for improvements to the industry announced by the Australian Prudential Regulation Authority.
We support the intent of ASIC’s report to ensure proper and fair claims processes throughout the life insurance industry that will help to ensure better outcomes for customers. We are committed to lifting the trust and confidence that consumers have in the life insurance sector.
We also support ASIC and APRA’s proposal to establish a consistent public reporting regime for life insurance industry claims data and claims outcomes once the common frameworks are agreed.
The broader reforms across the industry are significant and represent a step forward in strengthening the industry’s standards and practices. CommInsure supports the new Life Insurance Code of Practice, the proposed changes to remuneration practices and enhanced professional standards for advisers.
We will now take the time to review the report in detail and use this to support the continuous improvement of our insurance business. In 2015-2016 CommInsure paid around $929 million in life and income protection payments to around 22,600 customers.
We note ASIC’s statement regarding its investigation into CommInsure. An update on CommInsure was provided on 3 October 2016, providing further assurance as the independent reviews are on track. For more information, this update is available on the CBA Newsroom.